Court Authorizes $101 Million in Interim DIP Financing to Continue Normal
Operations
DENVER, Jan. 13 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc.
(Nasdaq: ULTEE) today announced that the U.S. Bankruptcy Court has granted
interim approval of the debtor-in-possession (DIP) facilities provided by
Wells Fargo Retail Finance and Mark Wattles, with immediate access of up to
$86 million. Approximately $70 million will be used to repay the Company's
outstanding pre-bankruptcy bank debt.
The Court has also approved the Company's first-day motions to continue
normal business operations, including the payment of employees and the
continuation of customer programs such as price guarantees, layaways, gift
cards and other credits.
"We are pleased that our requests received quick approval," said Dave
Workman, Ultimate Electronics' President and Chief Executive Officer. "With
the investment from Mark Wattles and the additional financing from Wells
Fargo, we now have the capital we need. Our customers can still count on us
for the same quality of service they have come to expect from us since 1968."
Ultimate Electronics filed voluntary petitions for relief under Chapter 11
of the U.S. Bankruptcy Code on January 11, 2005. The cases are being jointly
administered under Case No. 05-10104 (PJW), and are pending before the
Honorable Judge Peter J. Walsh Bankruptcy Judge, United States Bankruptcy
Court, District of Delaware. Additional information can be found at
http://www.deb.uscourts.gov or http://www.kccllc.net/ultimate.
Safe Harbor Statement
Certain statements made in this news release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are made based upon management's current
expectations and beliefs concerning future developments and their potential
effects upon the Company. These forward-looking statements include statements
regarding the Company's expectations concerning the bankruptcy process and the
continuation of its day to day operations and payments to vendors and
employees in the ordinary course. Actual results may differ materially from
those included in the forward-looking statements due to a number of factors,
including, but not limited to, the following: the ability of the Company to
continue as a going concern; the ability of the Company to obtain final
approval of the DIP facility; court approval of the Company's first day papers
and other motions prosecuted by it from time to time; the ability of the
Company to develop, prosecute, confirm and consummate one or more plans of
reorganization with respect to the Chapter 11 cases; risks associated with
third parties seeking and obtaining court approval to terminate or shorten the
exclusivity period for the Company to propose and confirm one or more plans of
reorganization, for the appointment of a Chapter 11 trustee or to convert the
cases to chapter 7 cases; the ability of the Company to obtain trade credit,
and shipments and terms with vendors and service providers for current orders;
the Company's ability to maintain contracts that are critical to its
operations; potential adverse developments with respect to the Company's
liquidity or results of operations; the ability to fund and execute its
business plan; the ability to attract, retain and compensate key executives
and associates; the ability of the Company to attract and retain customers;
and other risk factors identified in the Company's Annual Report on Form 10-K
for the fiscal year ended January 31, 2004, the Company's Quarterly Report on
Form 10-Q for the quarter ended October 31, 2004 and other filings with the
Securities and Exchange Commission. There can be no assurance that future
developments affecting the Company will be those anticipated by management.
The Company disclaims any obligation to update or revise any of the forward-
looking statements that are in this news release.
About Ultimate Electronics, Inc. (Nasdaq: ULTEE)
Ultimate Electronics is a leading specialty retailer of home entertainment
and consumer electronics products in 14 states. The Company operates
65 stores, including 54 stores in Arizona, Idaho, Illinois, Iowa, Kansas,
Minnesota, Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and
Utah under the trade name Ultimate Electronics(R) and 11 stores in Colorado
under the trade name SoundTrack(R). In addition, the Company operates Fast
Trak Inc., an independent electronics repair company and a wholly owned
subsidiary of Ultimate Electronics.
For further information, please contact: Investor Relations Department,
Ultimate Electronics, Inc. at 303-412-2500 (ext. 2640) or 1-800-260-2660
(ext. 2640) or e-mail shareholder@ulte.com.
SOURCE Ultimate Electronics, Inc.
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Related links:
http://www.kccllc.net/ultimate
Company News On-Call:
http://www.prnewswire.com/comp/877054.html
CONTACT:
Investor Relations Department of Ultimate
Electronics, Inc., +1-303-412-2500, ext. 2640, or
+1-800-260-2660, ext. 2640, shareholder@ulte.com
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