SOLON, Ohio, Aug. 15, 2003 (PRIMEZONE) -- Advanced Lighting Technologies, Inc. ("ADLT") (OTCBB:ADLTQ) announced today that it has filed an amended joint plan of reorganization with the US Bankruptcy Court for the Northern District of Illinois, Eastern Division. The amended disclosure statement and other definitive documents have not yet been completed or filed with the Bankruptcy Court. Both the amended plan and, when filed, the disclosure statement are subject to revisions by the Debtors before the applicable hearing dates and are subject to review and approval by the court. The Debtors can give no assurance that the proposed plan will be approved by the Bankruptcy Court, that the plan will receive the required approvals of the creditors and, if necessary, equity securityholders of the Debtors, or that the Debtors will be able to implement the proposed plan.
Although the amended plan is subject to amendment and to court and creditor approval, certain terms of the plan are summarized below because of their importance to investors in the Common Stock of ADLT. This release is not, and should not be construed as, a solicitation of support for the amended plan of reorganization as and when proposed by the Debtors.
After the Debtors' June announcement of an agreement in principle for an amended plan of reorganization among the Debtors, the Creditors' Committee and General Electric Company (GE), the Debtors and GE were approached by Saratoga Partners IV, LP to propose a new investment in the Company on its emergence from bankruptcy proceedings. As a result of these discussions, a Saratoga Partners' affiliate, Saratoga Lighting Holdings LLC, has purchased all of GE's equity interests in ADLT.
Under the amended plan, Saratoga Partners will make an $18,000,000 equity investment in ADLT in conjunction with plan confirmation and the $100,000,000 8% Senior Notes and unpaid interest due on such Notes will be exchanged for new Senior Notes having a principal amount of approximately $108,260,000 and maturity in 2010. ADLT will establish an incentive plan that would give key managers the opportunity to obtain about 9% of the equity of ADLT. As in the previously announced agreement in principle, the holders of ADLT's Common Stock, including holders of existing warrants and options who timely acquire shares pursuant to the terms of such instruments, will receive, in full and final satisfaction of their interests, in aggregate $2,850,000 pro rata, less the professional fees (up to $350,000) incurred by the committee representing the common shareholders. After the restructuring, it is contemplated that ADLT will no longer be a company with publicly traded stock. It is presently expected that ADLT will continue to file periodic reports with the SEC. Trade creditors will be offered the alternative of taking payment at the time of confirmation of 85% of the amount of their claims or being paid in full over a 12-month period.
"Upon confirmation of an amended plan, ADLT will continue its business operations uninterrupted and will have substantially improved its liquidity and opportunities for future success," said ADLT CEO, Wayne Hellman. "All of the Company's vendors and suppliers will be offered the opportunity to be paid 100% of the amounts they are owed. Should the Courts approve the amended Plan, the Company will emerge from bankruptcy with a new infusion of equity and the strong support of Saratoga Partners."
Hellman continues, "ADLT will continue to be a leading producer and developer of metal halide lighting products and advanced material products in the world today."
In other recent developments, the case has been reassigned to the Honorable Bankruptcy Judge A. Benjamin Goldgar. Information regarding the filings in this case is available on the court's web site. ADLT's case is jointly administered under case No. 03-05255.
About Advanced Lighting Technologies:
ADLT is an innovation-driven designer, manufacturer and marketer of metal halide lighting products, including materials, system components, systems and equipment. ADLT and certain of its United States subsidiaries, including APL Engineered Materials, Inc., are currently operating as debtors-in-possession while the companies reorganize under Chapter 11 of the United States Bankruptcy Code. ADLT 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., which is not operating under protection of the Bankruptcy Code.
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 ADLT to successfully emerge from bankruptcy, the ability of ADLT to operate successfully during the reorganization proceeding, and disruptions to ADLT'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 ADLT's EDGAR filings with the Securities and Exchange Commission. In particular, see "Risk Factors" in ADLT'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. ADLT's actual results could differ materially from those anticipated in these forward-looking statements.