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Advanced Communications Technologies, Inc. Awarded $8 Million Judgment
Monday December 27, 9:23 am ET
NEW YORK, Dec. 27 /PRNewswire-FirstCall/ -- Advanced Communications Technologies, Inc. (OTC Bulletin Board: ADVC - News), a holding company with subsidiaries specializing in the repair of computers, peripherals and consumer electronics, announced today that the Superior Court of California in Orange County has entered judgment in the approximate amount of $8 million in favor of the company pursuant to a lawsuit that it filed in February of this year. The ruling was made November 24.
The lawsuit against defendants Roger May, Advanced Communications Technologies (Australia), Pty, Ltd., Global Communications Technologies, Ltd. and Global Communications Technologies, Pty, Ltd. claims damages relating to certain wrongful actions against the company by the defendants.
This ruling will allow Advanced Communications Technologies, Inc. to eliminate all of its debt obligations to the defendants, totaling approximately $2.9 million as of September 30, 2004, and it declares the April 5, 2000 stock purchase agreement between the company and Advanced Communications Technologies (Australia), Pty., Ltd. null, void and of no legal effect. The company reserves the right to collect the balance of the judgment, or approximately $5.1 million, from all of the defendants.
Wayne Danson, president and chief financial officer of Advanced Communications Technologies, said, "This judgment represents the final step in restructuring our historical debt obligations, that, over the past 14 months, has resulted in the forgiveness, discounted settlement and payment of approximately $5.8 million of liabilities, in the aggregate."
The company will record approximately $2.9 million as forgiveness of debt income on its December 31, 2004 interim financial statements.
About Advanced Communications Technologies, Inc.
Advanced Communications Technologies, Inc. is a New York City-based public holding company that, through its wholly owned subsidiary and principal operating unit Encompass Group Affiliates, Inc., owns Cyber-Test, Inc., an established electronic equipment repair company based in Longwood, Fla. Additionally, Advanced Communications, through its wholly owned investment subsidiary Hudson Street Investments, Inc., owns a minority interest in Yorkville Advisors Management, LLC, an investment management partnership. For more information, visit Advanced Communications' website at advancedcomtech.net. |
