NEWS, Very GOOD news, is just out for AUTO!!!!!
biz.yahoo.com
STAMFORD, Conn.--(BUSINESS WIRE)--June 22, 2000--AutoInfo, Inc. (OTCBB:AUTO - news) today announced that it has entered into an agreement to acquire Sunteck Transport, Inc. (``Sunteck''), a full service third party transportation
logistics provider, and its wholly owned subsidiary, Ubidfreight.com, in exchange, upon closing, for 10 million shares of AutoInfo Common Stock, which will constitute approximately 37% of the proposed outstanding Common Stock of reorganized AutoInfo under its Chapter 11 Reorganization Plan.
Sunteck, which was formed in 1997, is a full service third party transportation logistics provider. Its services include ground transportation coast to coast, local pick up and delivery, warehousing, air freight and ocean freight. Sunteck has developed strategic alliances with Less than Truckload (LTL), truckload, air, rail and ocean common carriers to service its customers' needs. Sunteck's personnel have in excess of forty years of freight industry experience. Harry Wachtel, Sunteck's President and sole shareholder, will, upon the consummation of the merger, become Chairman of the Board, CEO and President of
AutoInfo.
The consummation of the transaction is contingent upon, among other things, the approval of the Merger Agreement and
AutoInfo's Disclosure Statement by the United States Bankruptcy Court, approval of the Disclosure Statement by AutoInfo's unsecured creditor class, the entry of an order confirming the Reorganization Plan and the securing of a firm commitment within 120 days for a financing resulting in gross proceeds to AutoInfo of at least $2.0 million.
The proceeds of the financing are intended for the development and implementation of Ubidfreight.com, an e-commerce business-to-business application which will provide an interactive freight auction matching available freight (shippers) and available cargo space (truckers and other carriers). The proceeds will be used to complete site development, fund start-up expenses, commence marketing and provide for administrative costs. The transition of Sunteck's existing customer and common carriers relationships as well as its industry experience and expertise will be a key elements in the development and
success of the Ubidfreight.com business.
Ubidfreight.com is a start-up business-to-business e-commerce real time freight auction market place where shippers will offer their freight for bid directly to carriers/truckers for transport. This live interactive environment will benefit shippers and carriers by reducing the cost of handling their freight through the competitive auction process.
William Wunderlich, President and Chief Financial Officer of AutoInfo stated, ``We are extremely pleased to announce this
transaction. It is the culmination of several months of planning and finalizing a transaction that, if we are successful at securing the required financing commitment and other closing conditions, meets the objectives we established for the restructuring of AutoInfo.''
``We are optimistic that we will receive the approval of the Bankruptcy Court of our Disclosure Statement which includes
the Sunteck transaction so that we can move expeditiously to the confirmation of our reorganization plan,'' Mr.Wunderlich
added. ``We will finalize our business plan and begin to seek out potential investors enabling us to consummate the merger and begin implementation of the Ubidfreight.com business plan. While we are excited to have reached this stage of our restructuring, our ability to satisfy the financing commitment contingency and consummate this transaction is by no means a certainty. In addition, if financing is secured, the ability to successfully develop, implement and bring to market the Ubidfreight.com e-commerce business application is subject to the inherent business risks associated with start-up technology ventures.''
``On behalf of the Company and our board of directors, we'd like to take this opportunity to thank our shareholders for their patience and confidence as we continued our restructuring efforts toward the restoration of shareholder value.
A hearing to review the Merger Agreement and Company's revised Disclosure Statement is scheduled to be held before the Honorable Adlai S. Hardin, Jr., United States Bankruptcy Judge, in Room 520 of the United States Bankruptcy Court, 300 Quarropas Street, White Plains, New York 10601, at 10:30 AM on June 27, 2000. All documents on file in this case, Case No. 00-10368, including the Merger Agreement and the revised Disclosure Statement and Plan of Reorganization can be viewed on the Bankruptcy Court's InterNet site as follows: ecf.nysb.uscourts.gov
This release contains ``forward-looking statements'' based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expected or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company, including (a) the ultimate confirmation of the Company's Reorganization Plan, (b) the Company's success in raising the required financing to consummate the merger transaction; and (c) the Company's ability to meet the other closing conditions to consummate the merger transaction. Therefore, there can be no assurance that forward-looking statements will prove to be accurate
Contact:
AutoInfo, Inc.
William I. Wunderlich
President, 203/595-0005 |
