Tuesday October 27, 6:01 am Eastern Time
Company Press Release
SOURCE: SGI International
SGI Announces Successful Debt
Restructuring
LA JOLLA, Calif., Oct. 27 /PRNewswire/ -- SGI International (OTC Bulletin Board: SGII -
news) announced today the successful restructuring of approximately $4.4 million of the
Company's current obligations. The debt restructuring is part of a plan management has
introduced to improve SGI's current financial posture and conserve operating capital. In a
private exchange offering, which began in early September, SGI's note and debenture holders
were asked to extend or exchange their existing notes, debentures and associated interest for
convertible debentures or preferred shares. Under the terms of the exchange offering, all
principal payments on the extended notes and debentures will be deferred until September 30,
1999.
As of today, note and debenture holders, representing nearly all of the $4.4 million in SGI debt,
have accepted the terms of our exchange offering. Joseph A. Savoca, Chairman/CEO stated:
''We are continuing to work with the remaining debt holders to complete the required
documentation, and we will close the offering on October 30, 1998. I am pleased with the
positive response we have received. The one year deferral of the principal payments significantly
improves our current cash position and allows us to focus our resources on finalizing our joint
venture with Mitsubishi Corporation and pursuing our other strategic initiatives.''
SGI International's core business is developing, commercializing and licensing new energy
technologies. Its corporate headquarters are in La Jolla, California.
(This news release contains forward-looking statements. Actual results could vary from those
expected due to a variety of risk factors, including, but not limited to, the uncertainty of
successful completion of contemplated or proposed business transactions.)
SOURCE: SGI International
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