LONE
Wednesday April 21, 9:16 am Eastern Time
Company Press Release
Bankruptcy Petition Against LifeOne Ordered to be
Dismissed
NORTH BETHESDA, Md.--(BUSINESS WIRE)--April 21, 1999--LifeOne, Inc.
(OTCBB:LONE - news), (the ''Company''), announced today that Judge F.A. Little, Jr.,
Chief Judge of the United States District Court for the Western District of Louisiana, has issued and filed his Ruling ordering the
Bankruptcy Court for the Western District of Louisiana to dismiss the involuntary bankruptcy petition filed against LifeOne on
August 27, 1998.
There were many overlapping motions arising from the earlier Bankruptcy Court decisions, but Judge Little found that the case should be resolved based on the disposition of two motions: LifeOne's appeal from the Bankruptcy Court's decision not to order arbitration, and Black Sea's motion to dismiss that appeal. (Black Sea, Ltd. is the petitioner who did not settle with LifeOne when the company settled with the other two petitioners, Asia Equities, Inc. and Arcadia Mutual Fund, Inc.) Judge Little first concluded that Black Sea's motion to dismiss LifeOne's appeal should be denied. Then, based on LifeOne's motion to dismiss the involuntary petition pending arbitration, Judge Little found that the debentures' arbitration clause should be enforced and that the involuntary petition should be dismissed. In reaching his conclusion, Judge Little reversed the Bankruptcy Court's December 1, 1998 decision denying LifeOne's motion to dismiss the involuntary petition pending arbitration.
LifeOne CFO, Brent Chapel said, ''We are pleased and relieved by Judge Little's decision, which vindicated our insistence that this case did not belong in a bankruptcy court. We know our shareholders, who have suffered tremendous damage by the unnecessary delay caused by a wrongful bankruptcy filing, will approve LifeOne's immediate resumption of progress in carrying out our business plan. It is obvious from the Court's Ruling that this matter did not belong in bankruptcy court.''
Contact:
LifeOne, Inc..
Brent Chapel
301-984-0800 |
