MONTREAL, March 8 /CNW Telbec/ - Mindready Solutions Inc. (TSX: MNY)
announces that in the process of integrating UTTC United Tri-Tech Corporation
("UTTC"), acquired on December 1, 2005, Mindready discovered major
discrepancies between certain UTTC assets and their respective values
pertaining to the utilisation of UTTC's bank credit facilities.
Since these discrepancies placed UTTC in default of its agreements with
JPMorgan Chase Bank, N.A., Mindready has since attempted to reach an agreement
with the bankers and former UTTC shareholders in order to write-off a portion
of UTTC's bank debt and to lower the price paid for UTTC.
While conditional agreements in principle have been reached in a very
limited time frame among UTTC, its bankers and certain former shareholders of
UTTC for a partial write-off of bank debt and a reduction in the price paid
for the shares of UTTC. However, as a result of this limited time frame, for
the moment Mindready has been able to secure only 80% of the interim financing
facilities required to execute these agreements in principle.
While discussions were still underway between the parties, after the
market close yesterday legal counsel representing JPMorgan Chase Bank, N.A.
served notice to UTTC for immediate payment of amounts due totalling
CDN$13,946,858 and of its intention to realize on its security and petition
for the appointment of an interim receiver. These notices are not aimed at
Mindready but only UTTC, which in its present financial position cannot honour
this demand.
While Mindready does not exclude the possibility of obtaining the
financing facilities required to execute the agreements in principle, given
the turn of events Mindready is examining all means at its disposal to ensure
its rights are respected and that it receives compensation from all parties
involved, including but not limited to the outright cancellation of the
transaction, claims for damages from the former UTTC shareholders, the
auditors in this file, as well as JPMorgan Chase Bank, N.A., which in taking
Mindready by surprise acted in a manner that we believe to be premature and
unjustified.
Mindready Solutions Inc. (TSX: MNY) is a leading supplier of innovative
end-to-end solutions for new electronic product introduction, from design to
manufacturing and test systems, serving the aerospace & defense, wireless
telecommunication and automotive & transportation markets. Mindready serves
clients such as Lockheed Martin, Raytheon, Northrop Grumman, Boeing, Visteon,
Rockwell Collins, NASA, Motorola, Panasonic, Alcatel, Ultra Electronics,
EMS-Technologies, NCR, the US military, Verizon, AT&T and JDS Uniphase.
Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.
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