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Arlo
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Nieuws Centraal
Court
Affirms Confirmation of Vanberger
Engineering (VE) Plan
of Reorganization
Luikerweg, Netherlands - June
14, 2006
Arlo
today announced that on June 14, 2006, the Court
in Arnhem (Rechtbank)
affirmed confirmation of Arlo Systems second amended Plan of
Reorganization (POR).
We
are now approaching the finish line of a long and complex process, said
Jan Kramer, managing director of Arlo Systems.
We
look forward to emerging with financial and competitive strength,
well-positioned for the future with a solid platform for growth.
The
affirmation order remains subject to appeal. Even if the order is
appealed, as outlined in the POR, absent the issuance of a stay, the
company can proceed if the key constituents in the proceedings agree
to waive the condition that the affirmation be final and non-appealable
and if certain other conditions to emergence are satisfied or
similarly waived. Such other conditions include completion of the
companys asbestos financing package and formation of the trusts
for the benefit of the claimants. Assuming that all of these things
occur, the company believes that it will be able to commence the
planned investment strategy anticipated under the Toren Vanberger
partnership agreement during the third quarter of 2006 or early in
the fourth quarter of 2006. As previously reported in the companys documents and past press releases, the companys
restructuring would resolve prepetition claims that are currently
subject to compromise including retiree medical, pension, asbestos,
and claims prior to 1975.
Pursuant
to the POR the equity interests of current stakeholders would be re-organised
and protect
Vanberger, Arlo and its subsidiaries against current and future
claims
the equity in the company would be distributed under the terms of
the Toren Vanberger partnership agreement.
The
POR also entitles two voluntary employee benefit associations
created in 2004 to provide medical benefits or funds to defray the
cost of medical benefits for salaried and hourly retirees to receive
euro2.41million immediately.
All
personal injury claims relating to both pre-petition and future
claims for asbestos, silica and coal tar pitch volatiles, and
existing claims regarding noise-induced hearing loss, would be
permanently resolved by the formation of certain trusts funded
primarily by the companys rights to proceeds from certain of its
insurance policies and the establishment of channeling injunctions
that would permanently channel these liabilities away from the
company and into the trusts.
INTERNET INFORMATION
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for
statements made by or on behalf of Toren Vanberger and its subsidiaries (the Company).
Information contained in this web site involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices, and other factors. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental, and technological factors. Accordingly, there is no assurance that the Company's expectations will be
realised. The Company assumes no obligation to provide revisions to any
statements made should circumstances change, except as otherwise required by
applicable laws.
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