InPlay Technologies Receives Court Approval of $7.5 Million Claim in Delphi Bankruptcy
February 27 2007 - 9:10AM
Business Wire
InPlay Technologies� (NASDAQ:NPLA), a developer and marketer of
innovative, emerging technologies, today announced that it received
bankruptcy court approval of the settlement agreement between
InPlay Technologies and Delphi Corp. under which InPlay
Technologies has been granted an allowed general unsecured claim
against Delphi Automotive Systems LLC in the amount of $7.5
million. �We are pleased to have reached this agreement with
Delphi,� said Bob Brilon, CEO, InPlay Technologies. �With the claim
stipulated, it becomes more marketable to firms purchasing Delphi
debt. We anticipate pursuing opportunities to monetize the claim,
which will strengthen our balance sheet and allow us to focus our
attention on our growing MagicPoint� and Duraswitch� business
opportunities.� InPlay�s claim stems from an agreement signed
between Duraswitch and Delphi in 2000. Delphi paid a non-refundable
payment of $4 million and committed $12 million minimum royalties
to Duraswitch through 2007 for exclusive rights to use Duraswitch
technologies in the automotive industry. Delphi had paid $3 million
of that $12 million commitment to InPlay, with an additional $3
million due in July 2006 and $6 million in July 2007. As part of
its bankruptcy filing in October 2005, Delphi filed a motion
seeking rejection of this agreement under relevant bankruptcy law.
The Court allowed the rejection subject to InPlay�s right to claim
damages for the breach of the agreement. InPlay subsequently filed
a damages claim for the remaining $9 million in minimum royalties.
About InPlay Technologies InPlay Technologies develops, markets and
licenses proprietary emerging technologies. Working with its
licensees and OEM customers, InPlay offers technology solutions
that enable innovative designs and improved functionality for
electronic products. The company�s MagicPoint� technology is the
only digital-based pen-input solution for the rapidly growing
tablet PC and mobile computing markets. Its Duraswitch� brand of
electronic switch technologies couples the friendly tactile
feedback of mechanical pushbuttons and rotary dials with the highly
reliable, thin profile of membrane switches, making it ideal in a
wide range of commercial and industrial applications. InPlay is
focused on further commercializing these technologies and seeking
additional innovative technologies to enhance its portfolio. Visit
www.inplaytechnologies.com for more information. This news release
contains certain �forward-looking statements� within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements include statements regarding our ability to monetize the
claim through the sale to a third party. Risks and uncertainties
that could cause results to differ materially from those projected
include our ability to obtain a favorable price for our claim and
other uncertainties described from time to time in our documents
filed with the Securities and Exchange Commission, including our
Annual Report on Form 10-KSB for the year ended December 31, 2005
as filed with the Securities and Exchange Commission on March 17,
2006. These forward-looking statements represent our beliefs as of
the date of this press release and we disclaim any intent or
obligation to update these forward-looking statements.
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