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|ISE Files for Chapter 11 Bankruptcy Protection|
SAN DIEGO, CA, Aug 10, 2010 (MARKETWIRE via COMTEX) -- ISE Limited (TSX: ISE) announced today that its principal operating subsidiary, ISE Corporation (a California corporation) has filed a voluntary petition to reorganize its business under Chapter 11 of the United States Bankruptcy Code. The filing was made in the United States Bankruptcy Court for the Southern District of California.
As previously announced on July 15, 2010, ISE had been actively seeking to raise additional capital through debt or equity or other capital raising efforts, such as asset sales, while also considering other strategic alternatives. ISE was unsuccessful in raising such additional capital or completing a strategic transaction. Accordingly, after a review of the various alternatives available to ISE, the board of directors concluded that utilizing the Chapter 11 process to restructure ISE's business is in the best long-term interests of ISE and all of its stakeholders.
ISE will continue operating its business during the Chapter 11 restructuring process. ISE is currently in discussions with lenders and strategic partners regarding a potential debtor-in-possession ("DIP") financing. ISE's objective in seeking DIP financing is to enable ISE to have adequate funds, when combined with ISE's operating revenue, to fund its working capital, meet ongoing obligations and ensure that operations continue without interruption during the restructuring.
About ISE Limited ISE Limited (www.isecorp.com) is a leading developer, manufacturer and distributor of Energy Storage Systems (ES Systems) and Heavy Duty Hybrid-Electric Drive Systems (Hybrid Systems). ISE products are developed based on our core proprietary technology, which focuses on three critical subsystems: energy storage, controls software, and power electronics. ISE specializes in series hybrid-electric and all-electric/zero emission technologies, and offers industry-leading ES Systems and Hybrid System components. Over the past 10 years, ISE has sold over 300 Hybrid Systems that have demonstrated reliability and performance in over 13 million miles of fleet operation.
Established in 1995, ISE is headquartered in San Diego, California. ISE's history of innovation and technological leadership has resulted in the design and development of systems and components that deliver superior operating performance.
Caution Regarding Forward-Looking Statements This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "project," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. Some of these factors are described in greater detail in the "Risk Factors" section of ISE's Prospectus dated February 11, 2010 filed on SEDAR, ISE's Annual Information Form for the year ended December 31, 2009 filed on SEDAR, and ISE's other filings with the Canadian securities regulatory authorities. These risks and uncertainties include, among others, risks associated with ISE's long and unpredictable sales cycle; risks associated with product liability and warranty claims and the safety of ISE's products; risks relating to ISE's need for additional capital; risks associated with variations in the size, type and timing of customer orders for ISE's products; risks associated with market acceptance and reliability of ISE's products; risks associated with entering into long-term contracts and contracts with governmental agencies; risks associated with the availability, level and terms of government subsidies and incentives; risks associated with customer concentration and ISE's dependence on a small number of suppliers and original equipment manufacturers ("OEMs"); risks associated with ISE's strategic relationships; risks associated with executing ISE's growth strategy in the United States and internationally and scaling up our manufacturing capacity; risks relating to the retention and recruitment of qualified personnel; risks resulting from competition with larger businesses with greater resources; risks associated with technological advancements in ISE's industry; and risks relating to the protection of ISE's intellectual property.
Although ISE believes that the expectations reflected in the forward-looking statements are reasonable, ISE cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, ISE does not intend to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.
ISE, the ISE logo and Ultra-E are trademarks of ISE Limited. Other brand or product names are trademarks of their respective holders. Copyright Copyright 2010 ISE Limited. All rights reserved.
SOURCE: ISE Limited