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Microcap & Penny Stocks : AETTQ - Alliance Entertainment - Largest Music Distributor -- Ignore unavailable to you. Want to Upgrade?

To: ilh1 who wrote (5)	1/7/1998 12:37:00 PM
From: Steve Rubakh	Respond to of 169

Hot industry potential via Web. Long term hold? Market Cap 2ml/ Out shares 36-40 mil. Small loat? Sales around 450-500 mil. For few cents.... Money committed from major banks. New mgnt. Looks like a winner if they do everything right. Plus some hot internet co might take them out. CDNOW? AMAZON.COM? YAHOO?.... <<<According to Mr. Teller, "My decision to step down as president and chief executive of Alliance reflects that fact that, with the Board's recent approval of a business plan, the stage is now set for Alliance's successful emergence from Chapter 11. That has been my overriding goal since July, and now that the job is *nearing completion, I feel my work here is -- for the most part -- complete. "The plan is the culmination of several months of work in which Mr. Weisman and senior management, under my direction, developed a plan that provides for the restructuring of Alliance as primarily a Florida- headquartered one-stop, budget and special products distribution company. With the Board's approval of that plan, I feel strongly that Eric Weisman and current management are more than capable of executing Alliance's plans both in the short and long term. I look forward to working with the Board to expedite Alliance's emergence from Chapter 11.">>>> NEW YORK, Aug. 14 /PRNewswire/ -- Alliance Entertainment Corp. (OTC: AETTQ) announced today that it has received final Court approval for its $50 million in debtor-in-possession (DIP) financing provided under a loan agreement with a syndicate of banks led by **The Chase Manhattan Bank. The Court had previously approved, on an interim basis, the Company's use of $20 million of the $50 million DIP financing. The financing will be used to support Alliance's domestic operations, including the AEC One Stop Group, Concord Jazz, INDI, and One Way Records. The DIP financing will provide adequate funds for the Company to purchase new goods and services and provide higher levels of service to Alliance's customers. Alliance approved for loan ÿ ÿ By DOREEN HEMLOCK Business Writer ÿÿÿÿÿ ÿÿÿÿÿ Alliance Entertainment Corp., the music distributor that filed for Chapter 11 reorganization early this week, on Thursday got a $20 million boost. ÿÿÿÿÿ A U.S. bankruptcy court judge in New York approved a $20 million loan from a debtor consortium led by Chase Manhattan***. The judge also set a July 30 hearing on another $30 million from the group. ÿÿÿÿÿ The money is the first of several financial injections expected for the New York-based firm that seeks to restructure and expand its Coral Springs warehouse operations. ÿÿÿÿÿ Alliance is seeking $1.3 million in tax incentives from Coral Springs, Broward County and the state for adding 200 jobs at its South Florida location. The expansion would consolidate operations now performed in other U.S. sites. ÿÿÿÿÿ The company also is discussing a $50 million equity investment from an unnamed group, and it is trying to sell the Red Ant record label to raise additional cash. ÿÿÿÿÿ Alliance filed on Monday for Chapter 11 bankruptcy protection, listing $512.4 million in assets and $536.6 million in liabilities, as of March 31. ÿÿÿÿÿ It blamed its financial problems on acquisitions during a period of little or no growth in music sales in the United States. The company lost nearly $150 million last year on sales of almost $700 million. ÿ