Corporation, a leading developer of
high-performance composite core cables for electric transmission and
distribution lines, today announced that it plans to reorganize under Chapter
11 of the U.S. Bankruptcy Code. The filing, made voluntarily today in the
U.S. Bankruptcy Court for the Central District of California, will enable CTC
to continue to develop, produce and market its innovative and cost effective
composite core electrical conductor to the utility industry. CTC's strategic
partners have indicated their continued support throughout this voluntary
reorganization. "CTC's plans to immediately submit a plan of reorganization
providing for payment in full (100%) to unsecured creditors including honoring
and adhering to the material provisions of its debenture holder agreements,"
said Leonard M. Shulman of Shulman Hodges & Bastian LLP in Foothill Ranch,
California, CTC's bankruptcy counsel.
CTC's bankruptcy is motivated solely to resolve several litigation matters
relating to claims demanding certain CTC stock for alleged services and
performance under certain subscription agreements. Although CTC remains
steadfast in opposing these claims, the ongoing cost of litigation in diverse
jurisdictions necessitates the consolidation of these cases into a single
forum. "Although CTC's financial condition remains strong, this litigation
must be resolved so that CTC may continue to grow and implement its goals,"
said CTC's Chairman and CEO Benton Wilcoxon. "We have chosen to file this
litigation-driven Chapter 11 to allow the Company's management to devote its
full resources to the production and marketing of our products, rather than
the demands and concerns created by litigation events that the company
believes are merely extortionate claims made by those parties that have not
contributed real value to the company. Given the unknown consequences of
litigation which might have endangered our ability to continue as a company,
we have sought protective measures. We are confident that our product sales
will move forward and allow us to achieve our objectives and that our
strategic partners understand that this reorganization will allow us to focus
on introducing our key ACCC cable product to an industry that is in great need
of a good solution to an overloaded electrical grid system."
Mr. Wilcoxon stressed: "Our relationships with our customers, suppliers,
strategic partners, and shareholders remain our primary focus which should
allow us to achieve the objectives of building the company as well as building
As a demonstration of its commitment to move quickly through the
bankruptcy process and to commence payments to its creditors, CTC plans to
file its Chapter 11 disclosure statement and reorganization plan as well as
numerous procedural and substantive motions concurrently with the filing of
its bankruptcy petition. CTC has taken swift action to maximize the value of
its business for all creditors and interest holders. Consequently, CTC is
optimistic that it will confirm its plan of reorganization and emerge from
bankruptcy within 90 to 120 days.
During the bankruptcy proceeding, CTC will be operating in a "business as
usual fashion" paying its post-bankruptcy debts as they become due and timely
servicing its customers' needs.
CTC is an Irvine, CA-based company providing high performance advanced
composite core conductor cables for electric transmission and distribution
lines. The proprietary new ACCC cable transmits two times more power than
comparably sized conventional cables in use today. ACCC can solve
high-temperature line sag problems, can create energy savings through less
line losses, and can easily be retrofitted on existing towers to upgrade
energy throughput. ACCC cables allow transmission owners, utility companies,
and power producers to easily replace transmission lines without modification
to the towers using standard installation techniques and equipment, thereby
avoiding the deployment of new towers and establishment of new rights-of-way
that are costly, time consuming, controversial and may impact the environment.
6th May 20005