HOUSTON, Feb. 21, 2006 (PRIMEZONE) -- Emerge Capital Corp. (OTCBB:EMGC) announced details today concerning Fred Zeidman serving as Chairman of The Board of Emerge Capital Corp. Mr. Zeidman is internationally known as a turnaround expert and business developer. Mr. Zeidman's experience includes acting as Chairman and CEO of Seitel, Inc. (OTCBB:SELA), which he recently led through a successful $300 million reorganization, with all creditors being paid one hundred cents on the dollar. Since his appointment in 2002, the Seitel market capitalization has grown from $4 million to approximately $365 million today. Additionally, Mr. Zeidman was appointed as co-trustee of the AremisSoft Liquidating Trust, which has recovered approximately $240 million in what has been described as one of the largest recoveries ever achieved in a stock fraud case. Mr. Zeidman also contributes a significant amount of his time serving as Chairman of the United States Holocaust Memorial Council in Washington, D.C., as well as devoting time to numerous other philanthropic endeavors.
Mr. Zeidman's business development efforts include building Unibar Energy Services into the largest domestic drilling fluids company in the USA. The company was sold to Anchor Drilling Fluids. Mr. Zeidman took over the reigns of Interpak Terminals as Chairman and CEO in 1993 and built it into one of the largest resin packaging and storage companies in the USA. It was sold in 1997 to Katoen Natie.
Mr. Zeidman commented on his role as Chairman of Emerge Capital Corp.: "I view Emerge as an opportunity to use my skills and experience in a unique and interesting plan to help emerging and re-emerging public companies restructure, and hopefully, prosper. We provide our services largely for equity in the public companies that we contract with, and view our business as having the opportunity to produce returns far greater in equity growth than solely cash compensation. Our mission is to build the reputation of Emerge Capital as being one of the most knowledgeable, effective and aligned turnaround and business development experts in the market."
Emerge Capital Corp. provides Business Restructuring, Turnaround Management, and Advisory Services for emerging and re-emerging public and private companies through its wholly owned operating subsidiary, Corporate Strategies, Inc. (CSI). CSI helps micro-cap public companies accelerate growth, provides working capital strategies, funding alternatives and in select cases, makes direct investments in our client companies. CSI markets its turnaround services to hedge funds, institutional investors, and banks that have significant exposure in troubled micro-cap public companies. Typically, these companies are in operational or financial difficulty, may be in default of lending or equity agreements, and may be facing bankruptcy or liquidation if their operations are not turned around. CSI is compensated with cash payments on a monthly or quarterly basis, and the most significant part of our compensation is in outright grants of equity in the form of common stock, and/or warrants for purchasing common stock. We believe this compensation plan provides us with an opportunity to achieve venture capital like returns on our equity participation, and aligns our interests with the client company and its shareholders because our ultimate compensation is determined by successfully increasing shareholder value. This performance based arrangement clearly demonstrates that our interests are consistent with the goals of our clients, their shareholders, and the shareholders of Emerge Capital Corp.
All statements included in this press release, other than statements of historical fact, are forward-looking statements. Although Management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors could cause actual results to differ materially from the expectations that are disclosed in this Press Release. While Emerge Capital Corp/Corporate Strategies, Inc. believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond Emerge Capital Corp/Corporate Strategies, Inc.'s control. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in Emerge Capital Corp/Corporate Strategies, Inc.'s filings with the Securities and Exchange Commission.