NetNews Offline 2/NetNews Offline Volume 2.iso/news/comp/dcom/modems-part1/7621

Internet Message Format | 1996-08-05 | 5.6 KB

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From: [e-mail] (Ricky Lacy)
Newsgroups: comp.dcom.modems
Subject: Hayes Wins!
Date: 11 Mar 1996 23:37:24 GMT
Organization: Hayes Microcomputer Products, Inc.
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                 HAYES WINS!  HAYES WINS!  HAYES WINS!
             HAYES REORGANIZATION PLAN CONFIRMED BY COURT

     Atlanta, GA -- 11 March 1996 -- With the confirmation of its Plan
of Reorganization by U.S. Bankruptcy Judge Hugh Robinson on 8 March,
Hayes Microcomputer Products, Inc. expressed today its enormous
gratification with the Court's order which permits Hayes to emerge
from Chapter 11 as an independent company.

     "Our stated intent and primary objective from the very start of
this case was to put forth a Reorganization Plan that would pay all
creditors in full and that would permit Hayes to emerge from Chapter
11 as a strong independent company making superior products backed by
superior service," said Dennis C. Hayes, Chairman and CEO of Hayes.
Continued Hayes, "Confirmation of the Hayes Plan will allow Hayes to
continue its nearly two decades of leadership in the computer
communications industry.  We look forward to competing in the fast
changing computer communications marketplace without the specter of
Chapter 11 looming in the background."

     The Hayes Plan of Reorganization calls for payment of all
creditors' claims in full plus interest.  Proceeds from a combined
equity investment of $35 million by ACMA Limited and Northern Telecom
Inc. (Nortel), a $70 million debt facility with The CIT Group/Credit
Finance, and the sale of surplus land owned by the company will be
used to cover the company's debts.  In exchange for their equity
investment, ACMA and Nortel will together acquire a 49% stake in
Hayes.  The remainder of the company's shares (51%) will be owned by
Dennis Hayes and the Employee Stock Plan.

     In issuing his order confirming the Hayes Plan rather than the
competing Plan of Reorganization proposed by the Creditors' Committee
and Diamond Multimedia Systems, Inc., Judge Robinson relied on Section
1129(c) of the U.S. Bankruptcy Code relating to the preferences of
creditors and equity security holders.  Judge Robinson wrote in his
order, "The Debtor's Plan [Hayes] is, therefore, preferred by at least
$34 million of the $43 million in outstanding unsecured debt, or
approximately 79% of the unsecured creditors' claims."  With regard to
the preferences of equity, Judge Robinson wrote, "In this case, the
Debtor's Plan is preferred by over 90% of the equity security
holders."

     Summarizing his reasons for confirming the Hayes Plan, Robinson
wrote, "The Debtor has offered a plan which proposes to pay all of its
creditors in full plus interest.  The Debtor's minority
shareholder...is being afforded fair and equitable treatment...The
majority shareholder and the majority of the creditors have come
before this Court and expressed their preference for the Debtor's
Plan.  Moreover, the public policy underlying Chapter 11
reorganization which serves to further the local economy, maintain and
create jobs, and preserve the value of an ongoing business is clearly
fulfilled by confirmation of the Debtor's Plan."

     Dennis Hayes said, "Over the past 16 months, the employees of
Hayes around the world focused on our core business, fixed our
operations problems, and turned the company around to the point where
we have been consistently generating profits for the past year.  We
continue to develop and ship new and exciting products and remain
committed to our customers -- past - present - and future.  With all
the confusion caused by the Chapter 11 filing in November 1994,
component shortages and other supply problems in early 1995, an
aborted merger attempt, two hostile acquisition attempts, seemingly
endless due diligence requests, frivolous patent infringement claims,
a dissenting minority shareholder, and numerous other challenges and
obstacles, the employees of Hayes have fought through it all.
Confirmation of the Hayes Plan is confirmation of their hard work and
success and complete vindication for those who stood by the company
during its most difficult period."

     In consultation with ACMA and Nortel, the CIT Group, and legal
and financial advisors, Hayes expects to soon prepare a schedule for
completion of the agreements required to comply with the Confirmation
Order.  Further details on the schedule will be forthcoming over the
next two weeks.

     Best known as the inventor of the PC modem, Hayes is recognized
around the globe as a leader in technical innovations, computer
communications standards, functional and feature-rich products, and
superior support and service.  Founded in 1977, Hayes develops,
manufactures, and markets value-based computer communications
solutions for software, business, network and consumer market
segments.  The company maintains an extensive global network of
authorized distributors, dealers, mass merchants, VARs, system
integrators and original equipment manufacturers.  Hayes customers
include Fortune 1000 corporations, mid-size companies and corporate
branch offices, small and home office businesses, on-line and
telecommunications network providers, and millions of individual PC
users around the globe.




Ricky Lacy -- Hayes Online Services
---
Hayes Microcomputer Products, Inc.      WWW: http://www.hayes.com
Voice Support: 770-441-1617                   ftp://ftp.hayes.com
(Mon-Fri, 8AM-6PM, eastern)                telnet://hayes.com
     For Hayes Tech Support, mailto:[e-mail]