FARMINGTON HILLS, Mich., Dec. 27, 2006 (PRIME NEWSWIRE) -- On December 27, 2006, Ajay Sports Inc. (Pink Sheets:AJAY) and affiliated companies filed an Appeal in the wrongful termination case of Ronald N. Silberstein v. Ajay Sports Inc. and affiliates with the State of Michigan Court of Appeals. As previously disclosed, on October 6, 2006 an Oakland County, Michigan jury issued an adverse verdict, awarding Plaintiff $850,000 plus $470,168 in legal fees, court cost and statutory interest, a total award of $1,320,168. Ajay Sports, Inc. strongly disagrees with the jury's conclusions and has filed an Appeal, and expects a positive result upon Appeal.
Due to the adverse decision reached in the wrongful termination case and the resulting $1,320,168 award, Ajay Sports, Inc. and its affiliates, including Pro Golf of America, Inc., have filed a Chapter 11 Reorganization under the Federal Bankruptcy Code. There will be no change in the day-to-day activities of Ajay Sports, Inc., Pro Golf International, Inc., Pro Golf of America, Inc. and affiliates, as the appeal process proceeds.
Restructuring plans for Ajay Sports Inc. will be submitted to the Bankruptcy Court. Ajay Sports is confident that a restructuring plan should be approved and anticipates that the business of Pro Golf of America will continue on a profitable basis as previously. Filing of Chapter 11 reorganization has no impact on the contractual relationship of franchisees.
Related to this process, Brian Donnelly has resigned as President/COO of Pro Golf of America, Inc. Brian has agreed to remain available for consultation regarding Pro Golf of America's business.
As stated by Rob Merget, General Manager of Pro Golf of America, Inc., "We at Pro Golf are pleased with the opportunity to move beyond the wrongful termination decision. We are proud of our Pro Golf franchisees and committed to providing the best buying experience in the industry for the benefit of our customers."
Founded in 1962, Pro Golf of America, Inc. is the premier golf franchiser in the world. Currently, a total of 107 privately owned and operated franchised Pro Golf retail stores are operating in the United States, Canada, Puerto Rico and Ireland. A store locator can be found online at www.progolfamerica.com. Its ecommerce site, www.progolf.com, offers a broad array of sporting goods, in addition to golf equipment and attire.
Pro Golf of America, Inc. is owned by Pro Golf International, Inc., a holding company, which, in turn, is owned by Ajay Sports, Inc., a publicly traded company under listing (Pink Sheets:AJAY).
The Ajay Sports, Inc. company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1373