SAN DIEGO, Calif., April 1, 2003 (PRIMEZONE) -- ABCI Holdings Inc. (OTCBB:ABCI) Chairman and CEO Mark L. Baum provided the following update for ABCI shareholders:
Mr. Baum stated, "For the past two months, I have been assessing the financial status of ABCI. In this regard, I needed to (1) get a clearer picture of what the liability side of the ABCI balance sheet looked like, and (2) speak directly to creditors and judgment holders in order to build credibility and determine whether or not, given the Companys cash resources, a settlement opportunity existed. Most importantly, I was interested in settling only valid claims against the Company.
"As it turned out, the Company had approximately $3.233 million pre-interest dollars in obligations to various creditors, judgment holders and convertible noteholders. Thus far, I have been successful in arresting and settling the claims of 28 different parties, totaling more than $2.85 million dollars. In order to secure these settlements, a total of 5,005,450 shares of restricted ABCI common shares have been issued. This amount to about 2.6 cents for every dollar of value claimed.
"Of the remaining debt, I am confident that I will be able to reach an amicable settlement with a significant number of the remaining 13 claimants. It is noteworthy that no remaining non-governmental creditor is owed more than $65,000.00.
"Clearly, we have come very far; however, much work needs to be done in order to finish the job of cleaning the Company balance sheet. I am hopeful that the remaining creditors, many of whom have not been contacted, will be amenable to a settlement when they see the asset side of the Company balance sheet.
"Regarding the Company's annual report: I am working diligently on the financials of the Company. I remain hopeful that we will be able to file our annual report within the next week or so.
"I will continue to provide timely updates regarding the balance sheet, as well as operational initiatives that are underway."
Contact Information:
Mark L. Baum, Chairman and CEO
Telephone: (858) 523-1112
Facsimile: (858) 523-9619
Email: mark@tblf.com
Mailing Address: Post Office Box 1688
Solana Beach, California 92075
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. In addition to the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand; and litigation involving product liabilities and consumer issues. ABCI cautions readers not to place undue reliance upon any such forward looking statements, which speak only as of the date made. ABCI expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.