Danka To Sell More Real Estate Properties To Reduce Debt
Press release from the issuing company
ST. PETERSBURG, FL (September 11, 2001) - Danka Business Systems, PLC (NASDAQ: DANKY) today announced that Danka Holding Company, its wholly-owned subsidiary, has entered into Purchase and Sale Agreements to sell its real properties located in Port Washington, New York, and Las Vegas, Nevada.
Danka will receive a total of $3,350,000 from the sales, less customary closing costs. The Company anticipates that the closing of these transactions will occur by the end of October. The Company will use the net proceeds of the sale to reduce debt obligations to its lenders on the properties.
Danka CEO Lang Lowrey said: "Danka has historically invested in Real Estate, in part because of its aggressive acquisition strategy; however, the Company has had to take recent write-downs due to the decline in property values. We are pleased with the progress we have made in selling these properties." Lowrey added: "Of course, debt reduction will continue to be a priority for Danka and the sale of these properties is an important component of the Company's efforts."
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