CPTCQ PR Out This Morning...GZFX big gapper too...
COMPOSITE TECHNOLOGY CORPORATION EMERGES FROM BANKRUPTCY WITH APPROVED PLAN TO PAY ITS CREDITORS 100% OF ALLOWED CLAIMS
SETTLEMENT OF ACQUVEST PARTIES’ CLAIMS
IRVINE, CA, November 1, 2005 - Composite Technology Corporation (CTC, the Company) (OTC Bulletin Board: CPTCQ.OB), a leading developer of high-performance composite core cables for electric transmission and distribution lines, emerged today from bankruptcy, after its Chapter 11 plan of reorganization providing for the payment of 100% of creditors’ allowed claims was confirmed by United States Bankruptcy Judge John Ryan. CTC’s confirmation comes less than six months after its bankruptcy was filed on May 5, 2005.
Just prior to the commencement of the hearing, the Company agreed to a complete settlement of the claims of Acquvest, Inc., Paul R. Koch, Victoria Koch and Patricia Manolis (the “Acquvest Parties”) and Michael Tarbox. The Company agreed to transfer 6.5 million shares (the “Settlement Shares”) to settle all of the Acquvest Parties claims. It will be the responsibility of the Acquvest Parties to settle any claims of Michael Tarbox against the Company. The shares would be delivered to Paul Couchot of Winthrop Couchot Professional Corporation within 7 days of plan confirmation. One half of the Settlement Shares would be transferred to the Acquvest Parties immediately on delivery with the remaining shares being released 45 days thereafter.
“Today was an exceptional ending to an extraordinary process. It is also a beginning as CTC continues to develop, produce and market its innovative and cost effective composite core electrical conductor to the utility industry. We are so pleased that CTC was able to emerge from bankruptcy so quickly,” said Leonard M. Shulman of Shulman Hodges & Bastian LLP in Foothill Ranch, California which represented CTC as its reorganization counsel. “This case moved more quickly from commencement to confirmation than any case I have either participated in or heard of for a publicly traded company. From beginning to end, we believe that this bankruptcy served exactly as it was intended – to resolve successfully the competing claims of various parties,” said Shulman’s partner Mark Bradshaw.
“We are extremely pleased with the bankruptcy court’s approval of our Chapter 11 plan of reorganization.” CTC’s Chairman and CEO, Benton Wilcoxon, stated yesterday. “Our ACCC cable product is designed, manufactured and marketed to an industry that is conservative by nature, which makes the commercialization process a slow and careful one,” Mr. Wilcoxon commented, “As we entered 2005, a potential hindrance to the successful commercialization of ACCC cable was a variety of pending lawsuits. We entered into our Chapter 11 reorganization to enable us to resolve our litigation liabilities and to send a clear signal to our customers that as we look beyond today’s hearing, the past liabilities of the Company have been predominantly clarified. We believe that our customers can now be confident that CTC has the ability to satisfy their needs with a product that we believe exceeds expectations. We also believe that product sales will move forward and allow us to achieve our objectives. The industry is in great need for a good economical solution to an overloaded electrical grid system and we believe that ACCC cable achieves this end. Our relationship with our customers, suppliers, strategic partners, and shareholders remains our primary focus. We are very thankful for all their support throughout this process”.
