(WLGS)World Wide Wireless Communications, Inc. Announces Agreement Resolving Its Indebtedness to Andrew Corporation
Updated: Thursday, July 26, 2001 10:24 AM ET Email this article to a friend!
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OAKLAND, Calif.--(BUSINESS WIRE)--July 26, 2001--
Company Also Announces Reorganization of Its Board of Directors and Appointment of New Chief Executive Officer, President, and Chairman of the Board; New Chairman Outlines Revised Strategic Plan
World Wide Wireless Communications, Inc. (OTCBB:WLGS) announced today that Eugene Davis has been unanimously appointed to the Board of Directors by its members in order to fill a vacancy and was elected its Chairman. Mr. Davis also assumed the positions of Chief Executive Officer and President.
The Company also announced that Jack Cutter, Robert Bowman and Sonny Rath have resigned as members of the Board of Directors and that Mr. Cutter has also resigned as Chief Executive Officer and President. Mr. Cutter and Mr. Bowman have resigned after accomplishing the twin goals of reducing expenses and finding a replacement. At Mr. Davis' request the Board also appointed Harry R. Kraatz to fill a vacancy on the Board and to continue his work in helping to restructure the Company's balance sheet, reduce costs and implement the revised strategic plan. Both Mr. Davis and Mr. Kraatz have been working with the Company as consultants in its efforts to restructure and chart a new strategic direction.
Mr. Davis is the Chairman of PIRINATE Consulting Group, LLC, which specializes in crisis and turn-around management, merger and acquisition consulting, hostile and friendly takeovers, proxy contests and strategic planning advisory services for public and private business entities. Mr. Davis has worked as an attorney, corporate executive and consultant in the reorganization and turn-around area for almost twenty years and has served as an executive, board member and/or consultant in the reorganizations of Emerson Radio Corp, Sport Supply Group, Inc., Coho Energy, Inc., SmarTalk Teleservices, Inc., TSR Wireless, Inc., Aquis Wireless Communications, Inc. and RBX Corporation, among others. Mr. Davis has been working with Worldwide since May of this year in the preparation of a new strategic business plan and in the Company's ongoing negotiation with its creditors. Both Mr. Davis and Mr. Kraatz have been directly responsible for securing the forbearance of the Company's major creditors while the Company prepares to execute its new strategic plan.
Mr. Kraatz is President of T.E.G. Inc., a crisis and turn-around management, franchise and financial consulting firm. In such capacity he has provided consulting services to numerous finance and franchising companies including Montgomery Medical Ventures, Commonwealth Associates, Westminster Capital, Liberty Travel, Swensen's Ice Cream and others. Mr. Kraatz has held various positions including, among others, serving as Vice Chairman of Commercial Bank of San Francisco and Chief Executive Officer of Finet Holdings Corporation.
In addition to the change in management announced today, the Company also reported that it has entered into an agreement with Andrew Corporation to resolve all its remaining indebtedness to Andrew in exchange for the return of all equipment previously shipped by Andrew to support the Company's intended operations in Argentina.
"The ability to fully satisfy the Andrew Corporation indebtedness eliminates one of the major obstacles to the Company's ability to continue its operations," noted Mr. Davis. "This agreement will remove over $1.4 million in debt from the Company's balance sheet and facilitates our attempts to carry forward with plans to recapture value for our shareholders and remaining creditors," he added.
At the same time, the Company's convertible debenture holders -- who together hold nearly $7 million in debt convertible to common shares of the Company's stock -- have agreed to continue to fund the Company's operations. They have also agreed, consistent with this on-going funding, to continue the Forbearance Agreements announced previously and to assist the Company in efforts to restructure itself without the need for bankruptcy court protection.
The Company's new management announced further that it is actively engaged in a number of efforts to revise its business plan to develop a viable alternative in today's difficult funding environment. Mr. Davis stated that, "Following an extensive review of our assets, operations and capital structure and continuing conversations with our creditors and staff, we have come to the conclusion that the company and its stakeholders will be best served by a redirection of the Company's strategic plan. We will deemphasize our participation in the wireless internet market, sell assets for cash and/or advance our remaining businesses through joint ventures, continue our negotiations with creditors to compromise, extend, convert and/or forgive debt and seek new businesses that can take advantage of our extensive shareholder base and status as a public company. We are irrevocably committed to preserving the Company and recovering value for our various stakeholder constituencies."
Finally, the Company also announced today that it has moved its offices to a smaller location in the same building in which it was previously located. In addition to reducing its rent by nearly $10,000 per month this move will also result in return of approximately $80,000 in moneys deposited to guarantee the original lease. The address and the telephone number remains the same.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control, delays in development and testing of products
CONTACT: World Wide Wireless Communications, Inc.
Gene Davis, 510/839-6100
www.wlgs.net
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