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From Vortex of Sound, Re: Creative's Purchase of Aureal Assets
"FREMONT, Calif., Sept. 21 /PRNewswire/ -- Aureal Inc. (OTC Bulletin Board: AURLQ - news) announced that on September 21, 2000, the U.S. Bankruptcy Court for the Northern District of California, Oakland Division entered the final order approving the sale of substantially all of the assets of Aureal to Creative Technology Ltd. (Nasdaq: CREAF - news). The sale will include settlement of all outstanding litigation claims between Aureal and Creative. Creative will pay US$28 million in cash, plus two new shares of Creative stock for every 100 outstanding shares of Aureal stock, or 208,079 shares of Creative stock. The Creative shares are valued at approximately US$4,357,174.19, based on the closing price of Creative stock on September 21, 2000. The sale agreement follows Aureal's previous announcement, on April 6, 2000, that it had filed for bankruptcy protection under chapter 11 of the Bankruptcy Code.
"While the sale will provide substantial cash for distribution to the creditors and, potentially, the shareholders of Aureal, the amount and timing of the distribution has yet to be determined. The amount available for distribution to shareholders will be determined only after the amount of all claims against Aureal have been determined. Distributions to creditors and shareholders will occur only after a plan of reorganization has been submitted to and confirmed by the Bankruptcy Court. Aureal anticipates that a plan of reorganization will be filed with the Bankruptcy Court within the next 90 days. After the filing of a plan of reorganization, the plan will be submitted to creditors and shareholders for voting and thereafter to the Bankruptcy Court for its consideration."
Paul
paulcs@flashcom.net
"While the sale will provide substantial cash for distribution to the creditors and, potentially, the shareholders of Aureal, the amount and timing of the distribution has yet to be determined. The amount available for distribution to shareholders will be determined only after the amount of all claims against Aureal have been determined. Distributions to creditors and shareholders will occur only after a plan of reorganization has been submitted to and confirmed by the Bankruptcy Court. Aureal anticipates that a plan of reorganization will be filed with the Bankruptcy Court within the next 90 days. After the filing of a plan of reorganization, the plan will be submitted to creditors and shareholders for voting and thereafter to the Bankruptcy Court for its consideration."
Paul
paulcs@flashcom.net
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