19 August 2005
19 August 2005
Composite Technology Corporation has agreed to a 30 day continuance of its Chapter 11 plan confirmation hearing to finalize the terms of its settlement with one litigation claimant and to further settlement negotiations with others.
CTC reached a settlement in principal with Ascendiant, resolving all issues among the parties. Leonard M. Shulman of Shulman Hodges & Bastian LLP, CTC’s bankruptcy counsel, stated: “We are extremely pleased that this matter has been resolved by settlement in lieu of continued litigation. The terms of the settlement must now be documented and submitted to the bankruptcy court for its approval. Creditors will receive notice of this settlement prior to the settlement hearing which we anticipate will occur in the next 30 days.”
CTC filed its voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code bankruptcy 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. The bankruptcy court originally scheduled the plan confirmation hearing for September 8, 2005 and CTC has now agreed to continue this hearing for 30 days.
Shulman further stated: “With the addition of the Ascendiant parties, we are very pleased that CTC will have additional support for its plan of reorganization. We believe a brief continuance of the plan confirmation hearing will prove to be very beneficial to provide the time needed to finalize the Ascendiant settlement and to continue our settlement discussions with other litigants, including Acquvest. CTC will continue working with its creditors, shareholders and all interested parties throughout this process. The proposed plan addresses all litigation claims and provides for payment in full (100%) to its creditors.”
CTC’s Chairman and CEO Benton Wilcoxon added: “We are pleased to have reached a settlement with Ascendiant and look forward to further discussions with the remaining claimants. CTC remains on track to emerge from bankruptcy to continue with its business of developing, producing and marketing innovative and cost effective products including marketing its composite core electrical conductor cable for the utility industry.”