SEBASTOPOL, Calif., May 15, 2002 (PRIMEZONE) -- ZAP (OTCBB:ZAPPQ) today announced that the U.S. Bankruptcy Court has approved its disclosure statement.
ZAP believes that the approval of the disclosure statement is an important step in the Company's reorganization process. ZAP also believes that its Plan is the only solution to allow the Company to emerge successfully from the Chapter 11 process.
The Company's reorganization plan includes the acquisition of two Sonoma County vehicle distribution companies. According to the Disclosure Statement, the Plan proposed by ZAP is the only feasible plan. The Company requires immediate, substantial working capital to increase sales and improve its position in the marketplace, which will come from the merger with Voltage Vehicles, and RAP and the anticipated exercise of Warrants. The merger will also enable ZAP to immediately cut overhead and other costs.
Officials at ZAP are urging all creditors and equity holders to vote for the Plan.
ZAP also announced that a hearing to consider confirmation of the Plan will be held on Friday, May 31, 2002.