Acclaim Entertainment, Inc. in Negotiations With Potential Lender to Replace GMAC Loan Facility; Receives Notice From Nasdaq
August 23 2004 - 7:51PM
PR Newswire (US)
Acclaim Entertainment, Inc. in Negotiations With Potential Lender
to Replace GMAC Loan Facility; Receives Notice From Nasdaq GLEN
COVE, N.Y., Aug. 23 /PRNewswire-FirstCall/ -- Acclaim
Entertainment, Inc. (NASDAQ:AKLM), announced today that the
extension agreement with its primary lender, GMAC Commercial
Finance LLC ("GMAC CF"), to extend GMAC CF's previously announced
termination of the Company's credit facility, expired on August 20,
2004. The Company is in negotiations with a new proposed lender
seeking to replace the GMAC CF credit facility. The replacement of
the GMAC CF facility will be subject to the execution and delivery
of definitive legal documentation by the Company, GMAC CF and the
new lender; provided that there can be no assurance that the new
lender will consummate the proposed transaction. Pending the
outcome of these negotiations, GMAC CF has agreed to refrain from
exercising its remedies against the Company. If these negotiations
are unsuccessful and GMAC CF exercises its remedies, then the
Company would be forced to seek the protection of the bankruptcy
laws. In addition, the Company announced today that it had received
notice from the Nasdaq Stock Market that delisting proceedings had
been initiated against the Company due to the Company's inability
to meet the minimum market capitalization continued listing
requirements of the Nasdaq Small Cap Market, as set forth in
Marketplace Rule 4310(c)(2)(B)(ii), and the Company's failure to
file its quarterly report on Form 10-Q for the period ended June
27, 2004, as required by Marketplace Rule 4310(c)(14). The Company
intends to appeal Nasdaq's delisting decision and expects to regain
compliance as a timely filer once it files its Form 10-Q with the
Securities and Exchange Commission, as soon as possible. During the
appeal process with Nasdaq, the Company's securities will continue
to trade on the Nasdaq Small-Cap Market pending a final
determination. In the event that the Company's securities are
delisted from The Nasdaq Stock Market, then the Company's
securities will be reported on the OTC Bulletin Board(R)(OTCBB) so
long as two or more broker/dealers make a market in the Company's
securities and the Company becomes current and continues to remain
current with its filings with the Securities and Exchange
Commission. Cautionary Statement The statements contained in this
release, which are not historical facts, are "forward-looking
statements." Acclaim cautions readers of this press release that a
number of important factors could cause Acclaim's actual future
results to differ materially from those expressed in any such
forward-looking statements. These important factors, include
without limitation, Acclaim's ability to complete the new credit
facility, as to which no assurances can be given, the continued
support of Acclaim's vendors, the financial strength of the
interactive entertainment industry, dependence on new product
introductions and the ability to maintain the scheduling of such
introductions, technological changes, dependence on major platform
manufacturers and other factors that could affect Acclaim, are
described in Acclaim's Annual Report on Form 10-K for the fiscal
year ended March 31, 2004, which was filed with the United States
Securities and Exchange Commission on July 1, 2004. Readers of this
press release are referred to such filing and are advised that
contained therein, the Company's independent auditors, KPMG, LLP,
have included in their independent auditor's report, dated June 29,
2004, an explanatory paragraph relating to the Company's ability to
continue as a going concern. Furthermore, Acclaim's consolidated
balance sheet as of March 31, 2003 and the consolidated statements
of stockholders' (deficit) equity for the seven months ended March
31, 2003 and each of the years in the two-year period ended August
31, 2002, the consolidated statement of cash flows for each of the
years in the two-year period ended August 31, 2002 and consolidated
statement of operations for the year ended August 31, 2001 have
been restated. Please see Note 2 (Restatement) to Acclaim's
Consolidated Financial Statements in its Form 10-K for the fiscal
year ended March 31, 2004. Media Contact: Financial Contact: Edward
Slezak Gerard F. Agoglia Acclaim Entertainment, Inc. Acclaim
Entertainment, Inc. (516) 656-5000 (516) 656-5000 DATASOURCE:
Acclaim Entertainment, Inc. CONTACT: Media, Edward Slezak, , or
Financial, Gerard F. Agoglia, , both of Acclaim Entertainment,
Inc., +1-516-656-5000 Web site: http://www.acclaim.com/
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