IRVINE, Calif., May 9 /PRNewswire-FirstCall/ -- Bankruptcy Judge John E.
Ryan on May 6, 2005, denied the emergency motions of two pre-bankruptcy
litigants seeking to have the automatic stay lifted and the litigation
reinstated. Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC)
filed a voluntary petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code bankruptcy on May 5, 2005 solely to have these litigation
claims addressed by the Bankruptcy Court in a single forum rather than having
to defend multiple lawsuits in multiple jurisdictions. Each of these lawsuits
related to claims for the issuance of CTC's stock. On the same day as its
bankruptcy filing, CTC filed a proposed plan of reorganization which if
confirmed by the Bankruptcy Court would pay its creditors in full. In light of
today's ruling, these lawsuits will remain before the Bankruptcy Court and
will be decided in due course.
Leonard M. Shulman of Shulman Hodges & Bastian LLP, CTC bankruptcy
counsel, states: "We are very pleased that CTC will now have an opportunity to
present its plan of reorganization to its creditors. CTC proposes a plan that
addresses its litigation claims and provides for payment in full to its
creditors. This process is moving very quickly and we are pleased with the
initial results." CTC's Chairman and CEO Benton Wilcoxon added: "We are
pleased with our results thus far. Everything is on track for CTC to emerge
from bankruptcy with the resources needed to continue to our business of
developing, producing and marketing innovative and cost effective composite
core electrical conductor to provide electrical grid solutions for the utility
industry. Nothing contained in our plan of reorganization is designed or
intended to negatively impact our shareholders."
This press release may contain forward-looking statements, as defined in
the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for
forward-looking statements provided to companies by the Reform Act does not
apply to Composite Technology Corporation (Company). However, actual events or
results may differ from the Company's expectations on a negative or positive
basis and are subject to a number of known and unknown risks and uncertainties
including, but not limited to, competition with larger companies, development
of and demand for a new technology, risks associated with a startup company,
risks associated with international transactions, general economic conditions,
availability of funds for capital expenditure by customers, availability of
timely financing, cash flow, timely delivery by suppliers, or the Company's
ability to manage growth. Other risk factors attributable to the Company's
business segment may affect the actual results achieved by the Company and are
included in the Company's Annual Report filed with the Commissioner on Form
10KSB for fiscal year ended September 30, 2004.
SOURCE Composite Technology Corporation