SANTA ANA, Calif., Sept 25, 2002 (PRIMEZONE) -- eSynch Corp. (OTCBB:ESYN), which has entered into an agreement granting control of the voting and ownership rights of Nacio Systems, announced today that on September 20, 2002, Nacio filed a Plan of Reorganization and Disclosure Statement with the United States Bankruptcy Court for the Northern District of California.
The Reorganization Plan filed by Nacio provides a roadmap for the Company's current and post-bankruptcy business strategy and the resolution of all creditor claims. The Plan looks for the approval of the creditors but can be approved by the Bankruptcy Court without the approval of all creditor classes. The Plan calls for eSynch to exercise its right to complete the stock purchase of Nacio and fund the Reorganization Plan on its effective date. Nacio hopes to emerge from Chapter 11 in Q4 2002.
"Nacio will continue to operate its business and network in a customer-centric manner and aggressively pursue new sales. We intend to successfully emerge from Chapter 11 reorganization as a stronger, more flexible company with a manageable debt load, and solid base of recurring revenue. During the reorganization process, we will continue to pursue potential strategic alternatives, which may be in the best interests of our customer, employees and creditors," said Tom Hemingway, CEO of Nacio and eSynch Corporations.
About Nacio
Nacio Systems, Inc (http://www.nacio.com) is one of the early leaders in the managed hosting and managed services market, providing full-service, high performance, commercial-grade Internet connectivity and wide area networks solutions for businesses that rely on the Internet for daily operations. This includes managed server hosting, collocation, and a full range of managed services.
About eSynch
eSynch (http://www.esynch.com), founded in 1994, is a software development company that designs and distributes turnkey and customized solutions for the digital delivery of rich media content. The Company's premiere product, MediaOffice(tm), is a DRM tool allowing flexible, secure and intelligent Internet distribution of business media content. MediaPod Player, an audiovisual presentation platform with interactive search and navigation capabilities that enables the user to fully control the viewing experience, and MediaMosaic, which incorporates streaming video, fully searchable transcripts synchronized to the video, are other leading indicators of the Company's strength in this space.
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in eSynch's Securities and Exchange Commission filings, including form 10-KSB for the year ended Dec. 31, 2001, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.