PRTI announces the filing of legal action against the
corporation
PRTI announces the filing of legal action against the
corporation
Monday, December 09, 1996 2:34 PM
PHOENIX--(BUSINESS WIRE)--Dec. 9, 1996--Phoenix Resources
Technologies Inc. (OTC/BB:PRTI) Monday announced that a lawsuit has been
filed against the company.
This lawsuit was filed by one of the lenders to the wood-products division that
was sold on Aug. 28, 1996.
The lawsuit alleges that the company is liable for an unpaid balance of
approximately $3.1 million on a note owed to the Agricultural Production Credit
Association.
Within a short time after the sale of the wood-products division, the corporation
sought protection from creditors by electing to enter bankruptcy proceedings
under Chapter 11 of the Bankruptcy Code.
When the subsidiary was sold, the corporation received a warranty against all
outstanding debts by the purchaser. At this time, it is unknown whether or not this
warranty is functional.
The board of directors, management and the corporate legal advisers are presently
considering all options, and an announcement concerning the course of action to
be taken is expected within the next 10 days.
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