Presstek Manufacturing Partner, Adast, Files For Bankruptcy
Press release from the issuing company
HUDSON, N.H., March 12 - Presstek, Inc., a leading provider of direct digital imaging technology, today announced that its manufacturing partner for its B3-size sheet-fed press, Adamovski strojirny, a.s. (Adast) of the Czech Republic, joined in a bankruptcy petition filed by its creditors on February 27, 2002. The B3-size sheet-fed press sold by Presstek is the only product line manufactured by Adast for Presstek.
Adast is continuing to operate and has indicated that its management is in negotiations with various parties to obtain interim financing.
Presstek's President and Chief Executive Officer Robert Hallman said, "The Adast bankruptcy is not expected to materially impact Presstek's 2002 operating plan as we anticipated only minimal revenues from this B3-size sheet-feed press product line in the current fiscal year. We believe that we have an adequate supply of Adast presses and spare parts to meet the projected needs of our customers in the near term. We are working with Adast to continue receiving our open orders and are exploring alternative manufacturing sources, including the use of existing manufacturing partners of our other products. We do not believe this bankruptcy will impact any other portion of our business.''
Hallman continued, "As a result of this information, we have adjusted our previously released fiscal 2001 fourth quarter net income and balance sheet to include an additional reserve of approximately $2.1 million to cover prepayments made by us to Adast for work-in-progress. We are currently discussing the treatment of this reserve for covenant calculation purposes with our lenders.'' A copy of the revised financial information is attached.
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