SOLON, Ohio, March 3, 2003 (PRIMEZONE) -- Advanced Lighting Technologies, Inc. (OTCBB:ADLQE) announced today that it is continuing negotiations with the Official Committee of Unsecured Creditors, appointed by the bankruptcy court, to achieve a mutually acceptable plan of reorganization in its voluntary Chapter 11 bankruptcy proceeding. The Debtors also continued to investigate the reasonable likelihood of alternatives to the offer made by the Committee, consistent with fiduciary duties.
The Company's view that common equity holders may have value to protect in the bankruptcy proceedings is based on a recent valuation estimate received from Debtors' financial advisors, as well as recent operating results, including performance in the month of January. As a result, it is the Company's view that the Debtors' creditors can be paid in full, that the Company's preferred shareholder is "in the money," and that there is a possibility that a meaningful amount would be available for common shareholders. The continued improved operating results, in the face of the Company's well-publicized financial difficulties, provide the prospect for enhanced common shareholder value. Of course, the Company can give no assurance that an alternative plan of reorganization will be proposed, that such a plan would enhance the ultimate recovery by common shareholders or that such a plan could be implemented over the objection of the Committee.
Wayne Hellman, Chairman and CEO of ADLT, explained: "The performance of the Company's operating subsidiaries continue to show improvement despite the costs of the restructuring process -- including costs of consultants and attorneys for both the Company and its creditors. The Company believes that the value of the Company will permit payment of all of its creditors. Therefore, the value of improved performance should belong to its equity investors, rather than its creditors. The Company is committed to fair treatment for all of its stakeholders."
"In the meantime, the Chapter 11 process allows us to preserve jobs, continue to pay our vendors, and work to realize the greatest possible value for all stakeholders. We plan to emerge from Chapter 11 as quickly as possible, and we are confident in our ability to continue to serve our customers' needs and to maintain service levels."
About Advanced Lighting Technologies
Advanced Lighting Technologies, Inc. is an innovation-driven designer, manufacturer and marketer of metal halide lighting products, including materials, system components, systems and equipment. The Company also develops, manufactures and markets passive optical telecommunications devices, components and equipment based on the optical coating technology of its wholly owned subsidiary, Deposition Sciences, Inc.
Forward-Looking Statements
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including uncertainties associated with the restructuring process, the ability of the Company to successfully emerge from bankruptcy, the ability of the Company to operate successfully during the reorganization proceeding, and disruptions to the Company's business relationships during the restructuring process. Other risks and uncertainties include the strength of the recovery of the U.S. economy, timely development and market acceptance of new products, including production equipment, the ability to provide adequate incentives to retain and attract key employees, the impact of competitive products and pricing, and other risks detailed from time-to-time in the Company's EDGAR filings with the Securities and Exchange Commission. In particular, see "Risk Factors" in the Company's Form 10-K for the fiscal year ended June 30, 2002. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects" and similar expressions are intended to identify forward-looking statements. The Company's actual results could differ materially from those anticipated in these forward-looking statements.