|Aureal's Assets to Be Purchased by Creative
September 21, 2000 11:06 PM
FREMONT, Calif., Sept. 21 /PRNewswire/ -- Aureal Inc. AURLQ 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. CREAF . 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.
Aureal stock is no longer traded on the OTC bulletin board. The National Quotation Bureau
is currently quoting Aureal Inc. stock under the symbol AURLQ. Financial service providers
that subscribe to the National Quotation Bureau can provide stock quotes.
Prior to the commencement of its chapter 11 case, Aureal was a leading provider of
advanced audio solutions for the computer, entertainment, Internet, and professional audio
markets. The company designed, built and distributed
advanced audio semiconductor, audio card and software solutions for personal computers
through the OEM, integrator/reseller/VAR and direct-to-customer channels. Aureal also
licensed technology designed to define and improve advanced audio standards in the
Forward-looking statements in this release are made pursuant to the safe harbor provisions
of the Private Securities Litigation Act of 1995. Investors are cautioned that such
forward-looking statements involve risks and uncertainties
including, but not limited to, dependence on the PC industry and on product lines based on
new technologies; foundry capacity, availability and reliability; competition and pricing
pressures; and other risks detailed from time to time in the company's periodic reports
filed with the Securities and Exchange Commission.
NOTE: Aureal, the Aureal logo, A3D, A3D Pro, Aureal Wavetracing, Vortex2 SuperQuad Digital
PCI, Vortex2 PCI, Vortex1 PCI, and Vortex Advantage are trademarks, and Vortex is a
registered trademark of Aureal Inc. Other names
may be trademarks of their respective owners.
SOURCE Aureal Semiconductor Inc.