Another winner from the vaults of Jonathon Lebed...sheesh...
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Tuesday February 9, 12:42 pm Eastern Time
Company Press Release
YES! Entertainment Files Voluntary
Petition Under Chapter 11
Interim Financing Totaling $20 Million
PLEASANTON, Calif.--(BUSINESS WIRE)--Feb. 9, 1999--YES! Entertainment (OTC BB: YESS)
today announced that it has filed a voluntary petition with the United States Bankruptcy Court for the District
of Delaware in Wilmington under Chapter 11 of the Federal Bankruptcy Code. The Company also
disclosed today that Infinity Investors, Ltd. has agreed to provide a $20 million working capital facility in
connection with the Chapter 11 case. The new facility, which the Company anticipates getting approved by
the bankruptcy court tomorrow, will replace the Company's existing facility with Bank of New York and
provide YES! with significant additional borrowing capacity.
Mark C. Shepherd, Chief Executive Officer of YES! Entertainment, said, ''Operating in Chapter 11 will
allow the Company to implement its strategic plan and reach our ultimate goal, to return the Company to
profitability. In addition, the financing gives YES! the necessary resources to support and develop its
product lines and will help ensure that YES! will be able to reorganize as a going concern.''
The Chapter 11 filing stays creditors' claims while the Company develops its plan for emergence from
Chapter 11. YES! will continue to operate its business in the ordinary course during the duration of the
Chapter 11 case and anticipates emerging from Chapter 11 as a stronger, more viable competitor.
YES! Entertainment Corporation develops, manufactures and markets toys and other children's products,
including a variety of interactive products. YES! uses innovative technology to design products that are fun
for children and build on their natural creativity.
This press release includes certain forward-looking statements that involve risks and uncertainties that could
cause actual results or events to differ materially from those in such forward-looking statements. Potential
risks and uncertainties include those contained in the Company's 10-K dated April 15, 1998 and
subsequent filings.
Contact:
YES! Entertainment Corporation
Mark Shepherd, 925/847-9444
or
Lippert/Heilshorn & Associates, Inc.
Lillian Armstrong, 415/433-3777
John Heilshorn, 212/838-3777 |
