Exhibit 99.1
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CONTACT: Leonard Carr
Sr. Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL REPORTS STATUS OF COLLECTION AND REFINANCING MATTERS
HOUSTON, Texas -- August 3, 2001 --Tidel Technologies, Inc. (Nasdaq: ATMS) today
reported on the status of the bankruptcy proceedings of Credit Card Center
("CCC"), formerly Tidel's largest customer, and the refinancing of Tidel's $18
million 6% subordinated convertible debentures.
Management has been diligently pursuing Tidel's claim of approximately $27
million as a principal secured creditor in the CCC Chapter 11 proceedings for
the past two months. Tidel is represented by three different legal teams in New
York, Pennsylvania and Texas, as well as a New York-based financial consulting
firm. In the most recent hearing on the matter on July 27, 2001 in Philadelphia,
the bankruptcy court allowed the continued use of cash collateral to fund CCC's
operations and set the next hearing for August 15, 2001, at which time CCC
expects to submit proposals for the sale of the company to prospective buyers.
Action on all other material motions pending before the court has been deferred
until that date.
CCC has now filed its formal financial schedules with the bankruptcy court
indicating total assets of $57 million and total liabilities of $78 million.
Preliminary data previously furnished by CCC had indicated assets of $34 million
and liabilities of $87 million. Tidel is currently reviewing the filings to
estimate amounts to be realized from the liquidation of assets securing its
claim. Based on these findings, the company will establish a reserve for any
amounts deemed to be unrecoverable.
Another matter of importance is the status of Tidel's $18 million 6%
subordinated convertible debentures. As previously reported, Tidel has been
working with the holders of the subordinated debt, Montrose Investments Ltd.
with respect to $15 million and Liberty Acorn Trust with respect to $3 million,
to effect a restructuring. The holders had previously deferred taking any action
with respect to the "put right" feature of the indebtedness, but both holders
have now exercised their "put rights". Currently, Tidel is obligated to prepay
the entire principal amount of $18 million, together with any accrued but unpaid
interest, on or before August 27, 2001. Notwithstanding these actions, Tidel is
continuing discussions with the debt holders as to restructuring. In this
connection, Tidel has engaged Banc of America Securities LLC to review financing
alternatives and assist in the discussions with the debt holders. Tidel does not
presently have the funds to cover the prepayment, and there can be no assurance
that the funds necessary to prepay the obligation will become available.
Tidel also announced that full financial results for its third quarter ended
June 30, 2001 will be reported on or about August 14, 2001.
Tidel Technologies, Inc. is one of the nation's leading manufacturers of
automated teller machines and cash security equipment designed for specialty
retail marketers. In 2000, Tidel was the leading provider of ATMs to non-bank
locations in the U.S., and ranked 55th in Forbes' list of the 200 Best Small
Companies in America. To date, Tidel has sold more than 30,000 retail ATMs and
115,000 retail cash controllers in the U.S. and 36 other countries. More
information about the company and its products may be found on the Internet at
www.tidel.com.
"SAFE HARBOR" DISCLAIMER UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS, INCLUDING
STATEMENTS AS TO ANTICIPATED OR EXPECTED RESULTS, BELIEFS, OPINIONS, AND FUTURE
FINANCIAL PERFORMANCE. THE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT
EXPECTATIONS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES THAT MAY CAUSE
THE COMPANY'S ACTUAL EXPERIENCE TO DIFFER MATERIALLY FROM THAT ANTICIPATED.
ESTIMATES ARE BASED ON RELIABLE INFORMATION AND PAST EXPERIENCE. HOWEVER,
OPERATING RESULTS ARE AFFECTED BY A WIDE VARIETY OF FACTORS, MANY OF WHICH ARE
BEYOND THE CONTROL OF THE COMPANY. FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THE
LEVELS OF ORDERS WHICH ARE RECEIVED AND CAN BE SHIPPED IN A QUARTER; CUSTOMER
ORDER PATTERNS AND SEASONALITY; COSTS OF LABOR, RAW MATERIALS, SUPPLIES AND
EQUIPMENT; TECHNOLOGICAL CHANGES; COMPETITION AND COMPETITIVE PRESSURES ON
PRICING; AND ECONOMIC CONDITIONS IN THE UNITED STATES AND WORLDWIDE.
ADDITIONALLY, FACTORS AND RISKS AFFECTING OPERATING RESULTS INCLUDE THOSE
DESCRIBED IN THE COMPANY'S REGISTRATION STATEMENTS AND PERIODIC REPORTS FILED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
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