SOLON, Ohio, Nov. 15, 2002 (PRIMEZONE) -- Advanced Lighting Technologies, Inc. (Nasdaq:ADLT) today announced that General Electric Company ("GE") would receive additional rights pursuant to the terms of its 1999 investment agreements. The rights arise from the failure of the Company to maintain a ratio of EBITDA to Interest Expense for the six months ended September 30, 2002.
Pursuant to the investment agreements, GE will have the right to vote the number of shares voted by Wayne R. Hellman, representing approximately 7.3% of the voting power of the Company. The combined voting power of GE and Mr. Hellman approximates 24% of the voting power of the Company.
In addition, the Company is required to issue to GE a warrant to purchase approximately 6.75 million common shares at a price of $.63055 per share. Unless GE exercises the warrant and pays the purchase price for the underlying shares, GE will not have the right to vote the shares issuable on exercise of the warrant, or to any other shareholder rights for those shares. GE is under no obligation to purchase the shares at any time. If GE were to fully exercise the warrant, its voting power (including the shares it owns and the shares voted by GE as described above) would be approximately 39%.
A more complete summary of the rights of GE is included in the Company's Annual Report on Form 10-K for the year ended June 30, 2002. This summary will be updated in the Company's Form 10-Q for the period ended September 30, 2002 which the Company expects to file on or before November 19, 2002.
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.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The Company currently has an agreement with the banks under the Company's Bank Credit Facility to continue to provide financing until March 31, 2003 despite an existing Event of Default under the facility. The agreement will remain in place so long as there are no further defaults and the Company's other lenders do not take certain actions adverse to the Company. The Company is currently seeking alternative financing sources. The holders of the Company's 8% Senior Notes have the right to accelerate the $100 million principal amount of the 8% Senior Notes. If the Company is unable to negotiate agreements with existing or replacement lenders and Note holders which permit it to continue to execute its operating plans, the Company may be forced to seek protection under the bankruptcy laws. As discussed in the Company's SEC filings, covenants in the Company's bank credit facility, the indenture relating to the Company's 8% Senior Notes and the Company's agreements with General Electric Company limit certain corporate actions. As a result, implementation of certain strategic alternatives may require consent or require replacement of these ADLT financing sources. The Company has no assurance that such consents or replacement financing can be obtained in a manner to permit timely implementation of these strategic alternatives. 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.