PubliCARD Emerges from Bankruptcy as Chazak Value Corp. and Will Focus on Acquisition of Privately Held Businesses Seeking to Re
31 Enero 2008 - 10:27AM
PR Newswire (US)
NEW YORK, Jan. 31 /PRNewswire-FirstCall/ -- On January 30, 2008,
the United States Bankruptcy Court for the Southern District of New
York (the "Court") confirmed the First Amended Plan of
Reorganization (the "Plan") of PubliCARD, Inc. (CARD.PK)
("PubliCARD", the "Debtor" or the "Company") (In re: PubliCARD,
Inc., Case No. 07-11517) which will now be known as Chazak Value
Corp. (the "Reorganized Debtor" or "Chazak") The new company will
focus on building its existing smart card business as well as
acquiring privately held businesses in the $10-100 million revenue
range that are seeking to restructure or that have succession
issues. Under the Plan, The 500 Group, LLC, an entity currently
controlled by PubliCARD's Chief Executive Officer, Joseph E.
Sarachek is receiving 90% of the Reorganized Debtor's common stock.
Under the Plan, all outstanding shares of PubliCARD common stock
and preferred stock were cancelled. Former holders of PubliCARD's
common will receive an aggregate of 5% of the Reorganized Debtor's
common stock (256,676 shares) and former holders of PubliCARD's
preferred stock will also receive an aggregate of 5% of the
Reorganized Debtor's common stock (256,676 shares). Proceeds of The
500 Group's contribution will be used to fund the Reorganized
Debtor, to pay allowed administrative expenses, allowed priority
claims, and pay allowed general unsecured claims. Holders of
general unsecured claims will receive an approximate 17% recovery.
Under PubliCARD's Plan, the new company Chazak Value Corp. will
issue 5,133,352 shares of common stock, including the shares being
issued to The 500 Group. All existing holders of PubliCARD common
stock with more than 100 shares will receive a distribution. NEW
BOARD WITH CONSIDERABLE RESTRUCTURING EXPERIENCE A new Board of
Directors for Chazak has been installed consisting of investment
professionals with considerable restructuring and investment
management expertise. In addition to Joseph Sarachek, who is
Managing Director of Triax Capital Advisors, a restructuring and
turnaround advisory firm, the Board consists of Roger Ehrenberg,
former CEO of DB Advisors, the $6 billion, 130-person global
investment platform of Deutsche Bank; Jonathan Lewis, a
professional investment manager focused on value-related
investments; Charles Fisch, a private investor and manager,
specializing in New York real estate; and David Marcus who manages
the Marcap Investors, a long-term investment company that invests
in European equities. Joseph Sarachek, the Chairman and Chief
Executive Officer of Chazak stated "given the current market
conditions, it is a favorable time to look for acquisitions of
small privately-held cash flow positive companies with management
teams in place." DATASOURCE: PubliCARD CONTACT: Joseph E. Sarachek,
+1-212-365-8792, for PubliCARD Web site: http://www.publicard.com/
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