MOUNDS VIEW, Minn., Feb. 13 /PRNewswire/ -- Liberty Enterprises has
reached a sufficient number of signed credit union and secured creditor
commitments to move forward toward the final steps of acquiring the assets of
Cavion Technologies. The credit union movement's top provider of payment
systems, marketing services and technology solutions announced the
developments Tuesday.
"The credit union affirmation and key secured creditors' agreements, plus
the strong support from Cavion leaders and staff, and major suppliers, allow
us to begin the final steps in this acquisition process," Liberty President
and CEO Robert D. Anderson said. "Though we are still not certain of Court
approval for the proposed acquisition, we are hopeful that we have put
together many significant pieces of an agreement that satisfies central
participants in the Cavion situation and allows for service continuity for
credit unions and their members."
Anderson emphasized Liberty continues to seek and accept credit union
customer commitments.
Liberty's agreements with key creditors sets the base for a Friday, Feb.
16 Bankruptcy Court hearing to consider allowing Cavion to sell its assets to
Liberty. The agreements also allow Liberty to advance additional cash to
Cavion to pay staff and allow credit unions to continue to be served by
Cavion. This would be the third cash infusion to Cavion from Liberty in the
past 30 days.
"We have given resources to Cavion in an effort to support credit unions
so that they will not suddenly find their members cut off from home banking
and other services," Anderson said. "Though there has been considerable risk
in this, we believe that we have reached a point where the momentum will carry
the situation to a successful conclusion for credit unions and their members.
"We also believe our solution serves Cavion staff, creditors and Cavion
suppliers as broadly as is financially realistic under the circumstances in
which Cavion finds itself."
Anderson said that Liberty has also dedicated financial and human
resources to its own acquisition strategies, including the formation of a team
focused on securing credit union agreements and other due diligence
activities.
Anderson noted that Liberty Executive Vice President for Internet
Applications Michael J. Provenzano will be in Denver later this week to
continue meetings with creditors, suppliers and Cavion staff. Provenzano, who
will head the Cavion unit if the acquisition is completed, is continuing
evaluation and planning for a transition to Liberty.
Liberty, the credit union movement's leading provider of payment systems,
marketing services and technology services, signed a letter of intent to
purchase the assets of the Denver-based credit union technology provider on
Jan. 19. Cavion filed for Chapter 11 bankruptcy protection on Dec. 21, 2000.
About Liberty
Liberty partners with 5,000 credit unions in all 50 states, Guam and
Puerto Rico. Liberty's core product is the check, still consumers' leading
financial transaction vehicle. The company is the credit union movement's
leading provider of payment systems (checks, card services, financial
supplies), marketing services (database marketing, creative services,
outsource marketing, market research) and technology solutions (data
processing, Web-site development and hosting, Internet banking). Liberty is
headquartered in Mounds View, Minn., a suburb of Minneapolis-St. Paul. The
company has also established marketing centers in Los Angeles, St. Louis,
Minneapolis and Hartford, Conn.
About Cavion
Cavion Technologies offers products and services for secure
business-to-business communications and secure Internet financial products and
services designed specifically for the needs of credit unions. The company's
Internet software products include secure Internet access, online
transactional banking, cellular access, online bill payment, and online loan
decision products, along with enabling software for kiosks.
Cavion created a secure, private communications network called CUiNET
(Credit Union interactive Network) exclusively for the credit union industry.
CUiNET provides a secure, high-speed communications platform for the delivery
of services, transactions and information to and from credit unions and
related organizations, such as trade organizations, corporate credit unions
and credit union vendors. The company's headquarters are located at 6466
South Kenton Street, Englewood, CO 80111. Its telephone number is
720-875-1900.
This news release contains forward-looking statements. Cavion uses words
such as "anticipate," "believe," "expect," "future," "may," "will," "should,"
"plan," "projected," "intend" and similar expressions to identify
forward-looking statements. These statements are based on the company's
beliefs and the assumptions it made using information currently available to
it. Because these statements reflect the company's current views concerning
future events, these statements involve risks, uncertainties and assumptions.
The actual results could differ materially from the forward-looking
statements. Some, but not all, of the factors that may cause these
differences are discussed in the risk factors section of the company's
periodic filings under the Securities Act of 1933. In any event, you should
not place undue reliance on these forward-looking statements, which apply only
as of the date of this news release.
For more information, contact Rick Foy, Liberty Public Relations Manager
at 800-607-2435, ext. 2436.
SOURCE Liberty Enterprises
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Related links:
http://www.libertycheck.com
Company News On-Call:
http://www.prnewswire.com/comp/110839.html or fax,
800-758-5804, ext. 110839
CONTACT:
Rick Foy, Public Relations, 800-607-2435,
ext. 2436, Robert D. Anderson, President & CEO, 800-607-2435,
ext. 2355, or Michael J. Provenzano, EVP for Internet
Applications, 800-607-2435, ext. 2308, all of Liberty Enterprises
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