NUR May File for Bankruptcy, Inspire Investments Cancels Funding Plans
Press release from the issuing company
LOD, Israel--June 16, 2005-- NUR Macroprinters Ltd., today reported that it had been notified by Inspire Investments Ltd. that Inspire had terminated the investment agreement associated with the previously announced private investment by Inspire of $10 million in NUR. The Inspire agreement had been conditioned upon, among other things, Inspire's completion of its due diligence review. As a result of the termination of the Inspire agreement, NUR's previously announced restructuring agreement with its lender banks will terminate since the debt restructuring was conditioned upon the closing of the Inspire investment. The termination of the restructuring agreement with NUR's lender banks will result in the acceleration of NUR's outstanding bank debt.
NUR's management intends to meet with its lender banks in order to discuss alternative restructuring plans. NUR is also actively considering alternative plans to address its immediate and long-term financing requirements, which alternatives include, but are not limited to, seeking protection from creditors under the Israeli bankruptcy laws.
NUR's independent auditors completed their audit of NUR's 2004 financial statements. As a result of the termination of the Inspire investment and the termination of the restructuring agreement and acceleration of NUR's outstanding bank debt, NUR expects that its financial reports will include a "going concern" qualification in the Independent Auditor's report to be included in its Annual Report on Form 20-F.
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