Global Capital Partners Intends to Take One Time Charge of approximately $25.5 Million Related to Promissory Notes received in Connection With the Sale of Its European Operations

Apr 25, 2001, 01:00 ET from Global Capital Partners Inc.

    CHARLOTTE, N.C., April 25 /PRNewswire/ --
     Global Capital Partners Inc. (Nasdaq: GCAP) announced today that it
 intends to record, for its fiscal year ended March 31, 2001, a pre-tax non-
 cash charge for a significant impairment of the $25.5 million of Promissory
 Notes, effectively writing down the carrying value of the Notes to their
 current fair value.  While the current fair value has not yet been determined,
 the Company expects that the write down will amount to substantially all of
 the $25.5 million current carrying value.
     The Notes were issued on June 14, 2000, in connection with the sale by the
 Company of its European operations to a group of investors lead by
 Braydonville Corporation NV.  The first payment on the Notes is due on
 June 14, 2001 and are secured by the stock of the European operations.
     Due to deteriorating market conditions that the Company believes have
 caused regulatory and other deficiencies in those European operations, and
 other factors, the Company believes that there will be a payment default on
 the Notes and that it is unlikely that the purchaser will cure such default.
 Since the Notes are secured, if there is a default on June 14, 2001 and the
 default is not cured, the Company would have the right to, and expects that it
 would, foreclose on the stock securing repayment of the Notes.  Due to those
 same circumstances, the Company believes that it is unlikely to realize any
 substantial proceeds from such foreclosure.
     The Company believes that none of the circumstances surrounding the write
 down of the Notes affects the assets or operations of the Company, including
 Global Capital Securities, the Company's full service broker-dealer, which
 maintains sufficient equity capital to meet its regulatory requirements.
     Global Capital Partners owns Global Capital Securities Corporation,
 Englewood, Colorado, a full-service investment banking and brokerage firm,
 with 15 offices nationally, a majority interest of Sutton Online, an online
 trading operation, and a majority interest in MoneyZone.com (OTC Bulletin
 Board: MOZN), a capital-formation Internet portal that matches investors with
 entrepreneurs.
     For additional information, please visit www.suttononline.com,
 www.moneyzone.com and www.gcapitalpartners.com.
     Certain information contained in this press release includes forward
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995 and is subject to certain risks and uncertainties,
 including but not limited to the effect of political, technological, economic
 and market conditions both domestically and in Europe and those referred to in
 the discussion of the risks and uncertainties set forth in the Global Capital
 Partners Inc. (formerly Eastbrokers International) Annual Report on Form 10-
 KSB-A for the fiscal year ended March 31, 2000, and in the Company's other
 reports filed pursuant to the Securities Exchange Act of 1934. Financial
 projections are management estimates and are subject to revision based on
 final audited financial statements. Readers are cautioned not to place undue
 reliance on these forward looking statements, which are made as of the date
 hereof and the Company undertakes no obligation to release any revisions to
 the forward looking statements to reflect events or circumstances after the
 date hereof or to reflect unanticipated events or developments.
 
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SOURCE Global Capital Partners Inc.
    CHARLOTTE, N.C., April 25 /PRNewswire/ --
     Global Capital Partners Inc. (Nasdaq: GCAP) announced today that it
 intends to record, for its fiscal year ended March 31, 2001, a pre-tax non-
 cash charge for a significant impairment of the $25.5 million of Promissory
 Notes, effectively writing down the carrying value of the Notes to their
 current fair value.  While the current fair value has not yet been determined,
 the Company expects that the write down will amount to substantially all of
 the $25.5 million current carrying value.
     The Notes were issued on June 14, 2000, in connection with the sale by the
 Company of its European operations to a group of investors lead by
 Braydonville Corporation NV.  The first payment on the Notes is due on
 June 14, 2001 and are secured by the stock of the European operations.
     Due to deteriorating market conditions that the Company believes have
 caused regulatory and other deficiencies in those European operations, and
 other factors, the Company believes that there will be a payment default on
 the Notes and that it is unlikely that the purchaser will cure such default.
 Since the Notes are secured, if there is a default on June 14, 2001 and the
 default is not cured, the Company would have the right to, and expects that it
 would, foreclose on the stock securing repayment of the Notes.  Due to those
 same circumstances, the Company believes that it is unlikely to realize any
 substantial proceeds from such foreclosure.
     The Company believes that none of the circumstances surrounding the write
 down of the Notes affects the assets or operations of the Company, including
 Global Capital Securities, the Company's full service broker-dealer, which
 maintains sufficient equity capital to meet its regulatory requirements.
     Global Capital Partners owns Global Capital Securities Corporation,
 Englewood, Colorado, a full-service investment banking and brokerage firm,
 with 15 offices nationally, a majority interest of Sutton Online, an online
 trading operation, and a majority interest in MoneyZone.com (OTC Bulletin
 Board: MOZN), a capital-formation Internet portal that matches investors with
 entrepreneurs.
     For additional information, please visit www.suttononline.com,
 www.moneyzone.com and www.gcapitalpartners.com.
     Certain information contained in this press release includes forward
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995 and is subject to certain risks and uncertainties,
 including but not limited to the effect of political, technological, economic
 and market conditions both domestically and in Europe and those referred to in
 the discussion of the risks and uncertainties set forth in the Global Capital
 Partners Inc. (formerly Eastbrokers International) Annual Report on Form 10-
 KSB-A for the fiscal year ended March 31, 2000, and in the Company's other
 reports filed pursuant to the Securities Exchange Act of 1934. Financial
 projections are management estimates and are subject to revision based on
 final audited financial statements. Readers are cautioned not to place undue
 reliance on these forward looking statements, which are made as of the date
 hereof and the Company undertakes no obligation to release any revisions to
 the forward looking statements to reflect events or circumstances after the
 date hereof or to reflect unanticipated events or developments.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16742212
 
 SOURCE  Global Capital Partners Inc.