AMERICAN FILM TECHNOLOGIES ISSUES OPTION TO H.J. MEYERS & CO. TO
PROVIDE $3 MILLION IN NEW EQUITY FINANCING
NEW YORK, New York--June 5, 1995--HREF="chap11.amerfilm.html">American Film Technologies Inc.
(OTC BULLETIN BOARD: AFTC.U) announced it has received approval by
the Bankruptcy Court of an agreement with the investment banking
firm H.J. Meyers & Co. Inc. to provide AFTC.U with $3,000,000 in new
equity financing to fund the latter's plan of reorganization. Under
terms of the agreement, H.J. Meyers & Co. has purchased an exclusive
90-day option to provide the $3,000,000 of equity financing pursuant
to which its investment group will receive 51 percent of the
reorganized AFTC.U.
The implementation of the financing is subject to the completion
of due diligence by H.J. Meyers & Co. and confirmation of American
Film Technologies' plan of reorganization which it will be filing
with the Bankruptcy Court.
American Film Technologies also announced that its former
President, Joseph Taritero, has won a judgment against the company
and certain former directors and officers for breach of his
employment contract with AFTC.U. The judgment for breach of
contract is in the amount of $892,000. Taritero also received a
punitive damage award solely against the former directors and
officers of the company. AFTC.U intends to appeal the judgment.
American Film Technologies Inc. has been the dominant supplier
of film coloring services to the motion picture and television
industries.
/CONTACT: Gerald M. Wetzler, chairman & CEO of American Film
Technologies, 212-751-7880/
SPECTRUM GRANTED ADDITIONAL TIME TO FILE PLAN OF REORGANIZATION;
COMPUTER BAY BANKRUPTCY CONVERTED TO CHAPTER 7
PURCHASE, N.Y.--June 5, 1995--Spectrum
Information Technologies, Inc. today announced that the United States Bankruptcy
Court for the Eastern District of New York has granted Spectrum's motion to extend the
time during which it has the exclusive right to
file a plan of reorganization under Chapter 11 of the federal
bankruptcy code until September 26, 1995. The court also granted
Spectrum's motion to convert the Chapter 11 bankruptcy proceeding of
its wholly owned subsidiary, Computers Unlimited of Wisconsin d/b/a
Computer Bay, to a case under Chapter 7.
Spectrum has reduced operating expenses and has been regularly
meeting with the court-appointed creditors' committee to discuss
Spectrum's activities and plans for reorganization since it filed
for Chapter 11 protection on January 26, 1995. The creditors'
committees did not object to the application for the extension. The
conversion of the Computer Bay case to Chapter 7 does not affect
Spectrum's plans to reorganize and focus on its core wireless
technology business.
Computer Bay had operated as a national aggregator for
independent resellers, selling leading lines of microcomputers and
related products and services. Computer Bay was continuing to lose
money at the time it ceased operations. Computer Bay had originally
filed under Chapter 11, rather than Chapter 7, to provide for the
possibility that its creditors would be willing and able to
reorganize the Computer Bay business - which is unrelated to
Spectrum's strategic plan regarding its core business. The Computer
Bay creditors chose not to revive the operation and did not object
to the conversion. Alan Nisselson, Esq., a Manhattan lawyer, has
been designated by the Office of the United Status Trustee as the
trustee to administer the Computer Bay estate.
/CONTACT: Media: Michael Freitag of Kekst and Company,
212-593-2655; or Investors: Donna C. George of Spectrum Information
Technologies, 914-251-1800 ext. 182/