ACCORD ADVANCED TECHNOLOGIES, INC. CONTACT: Investor Relations
5002 SOUTH ASH AVENUE Accord Advanced Technologies, Inc.
TEMPE, ARIZONA 85282 480-820-1400 X 121
VOICE 480-820-1400
FAX: 480 820-2319
FOR IMMEDIATE RELEASE: DECEMBER 26, 2000
ACCORD ADVANCED TECHNOLOGIES SUBSIDIARY FILES VOLUNTARY
PETITION FOR REORGANIZATION
Tempe, AZ - (Businesswire) - Accord Advanced Technologies (OTCBB: AVTI)
announced that they have filed a voluntary petition under Chapter 11 of the
United States Bankruptcy Code for its' wholly owned subsidiary, Accord SEG
(Semiconductor Equipment Group). Accord called the filing a necessary component
of its strategy to create a sustainable capital structure with improved cash
flow, enhance its manufacturing operations, and improve its profitability.
"While the decision to file a Chapter 11 petition was not an easy one, the Board
of Directors determined that it was the best means of obtaining the financial
flexibility to address our economic and competitive challenges," said CEO Travis
Wilson.
"We are committed to using the "breathing room" provided under Chapter 11 to
implement a strategic plan designed to ensure the long term viability of our
Company for the benefit of our employees, customers, vendors, and our
shareholders."
Contracts with Chinese companies that totaled approximately 2 million USD were
shelved due to an unexpected increase in equipment/parts costs that were due
from market conditions. The shelving of these contracts caused a significant
decrease in Accord's operating revenues and corresponding cash flows. Accord is
still currently involved with other future business opportunities with these
companies.
Secondly, Accord's facility was damaged from an unforeseen rupture of a water
supply line. Manufacturing operations were suspended or interrupted for several
weeks, while repairs were made and insurance appraisers were making further
evaluations of the damages. This event caused further delays in scheduled
shipments, further handicapping the Company's ability to meet current
obligations. Accord does carry sufficient insurance coverage, and is seeking
some interim relief from insurance claim settlements.
Lastly, difficulties with the landlord that resulted in a temporary lockout of
the facility caused further delays in scheduled shipments, thus, exacerbating
the Company's cash flow problems.
"Our plan is to work through the issues regarding the restructuring as quickly
as possible. This filing is therefore in the best interests of both Accord and
its creditors, in that it affords us the time and protection necessary to
stabilize and develop a long-term plan that will address both our debts and our
future. It is undoubtedly the best course of action."
Accord has completed work for such well-known companies as American
Microsystems, Honeywell, Rockwell International, Integrated Solutions, Motorola,
Intel, MRC (Sony), California Micro Devices, Eastman Kodak, National
Semiconductor, Siemens Semiconductor Group, Lockheed, IDT and Texas Instruments.
Note: This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. All forward-looking statements are
inherently uncertain as they are based on current expectations and assumptions
concerning future events or future performance of the Company. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
are only predictions and speak only as of the date hereof. In evaluating such
statements prospective investors should carefully review various risks and
uncertainties identified in this release and matters found in the Company's SEC
filings. These risks and uncertainties could cause the Company's actual results
to differ materially from those indicated in the forward-looking statements.
* * * *