FARMINGDALE, N.Y., May 9, 2001 (PRIMEZONE) -- Colorado Prime Corporation (the "Company") announced today that it has successfully restructured its balance sheet, whereby $85 million of the Company's 12.50% Senior Unsecured Notes due 2004 (the "Notes") have been retired and the associated accrued interest forgiven.
As a result of a series of transactions in connection with the Note retirement, the holders of the Notes will own all of the Preferred Stock and 85% of the Common Stock of a new holding company, which in turn will own 100% of the common stock of the Company. In addition, the new holding company has issued warrants to purchase up to 5% of its Common Stock to the equity owners of the Company's prior parent company.
The Company also negotiated various amendments to the terms of its Secured Working Capital Revolver (the "Revolver"), including an extension of the maturity date to April 30, 2003.
Paul Roman, President and Chief Executive Officer of the Company, said, "We are very excited about this series of transactions. We have significantly deleveraged the Company and accomplished this without impairing the Bank Group or any of our vendors. At January 1, 2000 the Company was burdened with $85 million of Notes outstanding and $40 million of Revolver debt. Today the notes have been retired and we have paid down the Revolver from cash generated by operations to $33 million. As a result, the Company's annual debt service will be reduced by almost $11 million."
Roman continued, "I want to personally thank our loyal employees who have worked hard during this difficult period and our suppliers who have continued to support us. The management team is appreciative of the confidence placed in them by the Note holders and the Bank Group. We are committed to working hard toward a long and profitable future for the Company."
This news release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. All statements other than statements of historical fact are forward-looking statements for the purpose of these provisions, including any projections of earnings, revenues or other financial items, any statements of the plans and objectives of management for future operations, any statements concerning new products or services, any statements regarding any future economic conditions or performance and any statements of assumptions underlying any of the foregoing.