|
 |
| 2002 News and Press Releases |
|
|
HEADLINE ARCHIVED:
ASC Announces Initial Cash Distribution Following Dismissal Of Shareholder Suit
By: Staff Writer
PR Newswire. November 22, 2002
_________________________________________________________________________
EXCERPT: Advanced Switching Communications, Inc. today announced its Board of Directors has approved an initial cash distribution of $1.32 per share to holders of the Company's common stock. The distribution will be paid on December 16, 2002 to holders of record as of December 2, 2002. The liquidating distribution announced today distributes to stockholders a portion of the proceeds received by the Company from the sale of substantially all of its office and furniture and equipment, its component inventory, and its intellectual property after making provision for taxes and reserves for contingent liabilities and post-closing obligations related to those transactions. As of October 31, 2002, the Company had approximately $64.2 million in cash and cash equivalents. The Company expects to distribute approximately $57.0 million to shareholders, to use approximately $3.6 million to satisfy liabilities and ongoing costs of liquidation and to retain the balance as a reserve for contingent or unknown claims. The Company previously announced that the United States District Court for the Eastern District of Virginia has dismissed, without prejudice, the consolidated securities class action complaint naming the Company and certain of its officers and directors as defendants. The time period for filing an amended complaint in response to the court's decision has expired, and the plaintiffs have agreed in writing not to appeal the order granting the motion to dismiss. The Company will focus its efforts on winding up its business and affairs, selling and liquidating any remaining assets, paying creditors and making distributions to stockholders, all in accordance with the plan of liquidation and dissolution adopted by the Company's stockholders on April 9, 2002. The Company may make subsequent distributions, as appropriate, during the course of the wind down period as non-cash assets are converted to cash and liabilities are settled. There can be no assurance that any additional distribution will be made or that any such distribution will be material in amount. The amount and timing of additional liquidating distributions, if any, will depend on the payment or provision for the payment of debts, expenses, taxes and other liabilities of the Company and the timing and cost of liquidating and winding up the Company's business and affairs.
|
|
|
