NEWS Out This Morning About The BK...
This arrived via email this a.m. from Investor Relations...
BANKRUPTCY JUDGE APPROVES COMPOSITE TECHNOLOGY CORPORATION'S DISCLOSURE STATEMENT
IRVINE, CA (July 8, 2005) -- Bankruptcy Judge John E. Ryan on 6th of July approved the Disclosure Statement filed by Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTCQ) detailing its Chapter 11 plan of reorganization. CTC filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on May 5, 2005. On the same day as its bankruptcy filing, CTC filed its proposed plan of reorganization which, if confirmed by the Bankruptcy Court, would pay its creditors in full. In light of today's ruling, CTC may now seek confirmation of its plan of reorganization from its many constituencies including trade vendors, debenture holders and litigation claim holders. The bankruptcy court has scheduled a plan confirmation hearing for September 8, 2005.
Leonard M. Shulman of Shulman Hodges & Bastian LLP, CTC's bankruptcy counsel, stated: "We are very pleased that CTC will have an opportunity to pursue its plan of reorganization. CTC will continue working with creditors, shareholders and all interested parties throughout this process. CTC proposes a plan that addresses its litigation claims and provides for payment in full (100%) to its creditors. This process continues to move very quickly and thanks in large part to my partner Mark Bradshaw, CTC is in a position to emerge from Chapter 11 in record time." CTC's Chairman and CEO Benton Wilcoxon added: "We are extremely satisfied with our results thus far. CTC is on track to emerge from bankruptcy to aggressively continue with its business of developing, producing and marketing innovative and cost effective composite core electrical conductors for the utility industry."
Judge Ryan also recently ordered that the Acquvest and Ascendiant parties may resume their pre- bankruptcy litigation in their respective venues, but stopped short of allowing these parties from attempting to collect on any judgment that might be later obtained. "CTC will continue to vigorously defend these matters. For now, the state court litigation will serve only to define the amount of these claims, if any, with all other issues remaining with the Bankruptcy Court," Shulman said.
ABOUT CTC: Composite Technology Corporation is an Irvine, California based company providing high performance composite core conductor cables for electric transmission and distribution lines. The novel proprietary ACCC cable is superior to existing conventional conductor products of the same diameter in a number of key performance areas, including: Up to double the current carrying capacity of conventional cables; virtually eliminates high- temperature sag; uses conventional installation methods and tools; reduces construction costs on new lines by requiring fewer structures; may be retrofitted on existing structures to increase current capacity; non-corrosive core; eliminates bi-metallic corrosion; and reduces line losses, compared with same diameter conventional cables, at same operating temperatures. More information can be found at www.compositetechcorp.com or by contacting James Carswell, Director of Investor Relations, at 760-416-8628.
More information on the reorganization can be obtained by calling Leonard M. Shulman, Esq. or Mark Bradshaw, Esq. at 949-340-3400 or by email at lshluman@shbllp.com
Good Luck to ALL :>)
