Composite Technology Settles Litigation and Agrees to Brief Continuance of Plan Confirmation Hearing
IRVINE, Calif., Aug. 16 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTCQ), has agreed to a brief continuance (30 days) 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 Capital Group, Inc., Mark Bergendahl, and Bradley Wilhite (collectively "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." About CTC: Composite Technology Corporation is an Irvine, California based company that develops, produces, tests and markets novel products based upon composite materials technology. Its subsidiary, CTC Cable Corporation, produces and markets patent pending high performance composite core conductor cables for electric transmission and distribution lines. CTC's novel ACCC cable is superior to existing conventional conductor products of the same diameter in a number of key performance areas, including: Up to twice the ampacity of conventional cables; virtually eliminates high-temperature sag; uses conventional installation methods and tools; reduces construction costs on new lines by requiring fewer structures; may be retrofitted on existing structures to increase current capacity; non-corrosive core; eliminates bi-metallic corrosion; and reduces line losses, compared with same diameter conventional cables, at same operating temperatures. More information can be found at www.compositetechcorp.com or by contacting James Carswell, Director of Investor Relations, at 760-416-8628. More information on the reorganization can be obtained by calling Leonard M. Shulman, Esq. or Mark Bradshaw, Esq. at 949-340-3400 or by email at email@example.com 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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