NEWS - Wednesday, August 25, 2004
More Problems For Acclaim
Aug. 23 Acclaim Entertainment, Inc. (Nasdaq: AKLM - News), announced today that the extension agreement with its primary lender, GMAC Commercial Finance LLC ("GMAC CF"), to extend GMAC CF’s previously announced termination of the Company’s credit facility, expired on August 20, 2004. The Company is in negotiations with a new proposed lender seeking to replace the GMAC CF credit facility. The replacement of the GMAC CF facility will be subject to the execution and delivery of definitive legal documentation by the Company, GMAC CF and the new lender; provided that there can be no assurance that the new lender will consummate the proposed transaction. Pending the outcome of these negotiations, GMAC CF has agreed to refrain from exercising its remedies against the Company. If these negotiations are unsuccessful and GMAC CF exercises its remedies, then the Company would be forced to seek the protection of the bankruptcy laws. In addition, the Company announced today that it had received notice from the Nasdaq Stock Market that delisting proceedings had been initiated against the Company due to the Company’s inability to meet the minimum market capitalization continued listing requirements of the Nasdaq Small Cap Market, as set forth in Marketplace Rule 4310(c)(2)(B)(ii), and the Company’s failure to file its quarterly report on Form 10-Q for the period ended June 27, 2004, as required by Marketplace Rule 4310(c)(14). The Company intends to appeal Nasdaq’s delisting decision and expects to regain compliance as a timely filer once it files its Form 10-Q with the Securities and Exchange Commission, as soon as possible. During the appeal process with Nasdaq, the Company’s securities will continue to trade on the Nasdaq Small-Cap Market pending a final determination. In the event that the Company’s securities are delisted from The Nasdaq Stock Market, then the Company’s securities will be reported on the OTC Bulletin Board(R)(OTCBB) so long as two or more broker/dealers make a market in the Company’s securities and the Company becomes current and continues to remain current with its filings with the Securities and Exchange Commission. The company said in a statement last night that it will be filing its results with the SEC shortly, and will begin appeal proceedings against the NASDAQ delisting. It hopes to regain compliance with the market’s rules "as soon as possible" following the results filing.Source: http://www.acclaim.com
