Composite Technology Defeats Two Emergency Motions Filed by Pre-Bankruptcy Litigants That Would Have Forced the Immediate Resumption of Litigation
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
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