Message #4 From:
Stock News Bot Date: September 21, 2005 06:59:00 AM
GLBT News GlobalNet Signs Debt Settlement and Release Agreement; Company Reduces Outstanding Debt by Approximately $19.6 Million
HOUSTON--(BUSINESS WIRE)--Sept. 21, 2005--GlobalNet Corporation (Pink Sheets:GLBT) announced it entered into a settlement and release agreement with its largest creditor effectively eliminating approximately $19.6 million in debt owed by its wholly owned subsidiary, GlobalNet International, LLC ("International").
On September 14, 2005, GlobalNet and International entered into a settlement agreement with their primary creditor. Pursuant to the settlement agreement, International acknowledged that it owed its creditor total debts in the amount of approximately $19.6 million.
All parties to the agreement released each other from all existing claims, obligations, rights, causes of action and liabilities, and in consideration for providing the release, GlobalNet and International agreed to waive their right to a prepaid $250,000 deposit and made an additional payment in the amount of $180,000 to its creditor.
Commenting on the agreement, Mark T. Wood, Chairman and CEO of GlobalNet said, "Today's announcement is a very positive step in the financial restructuring of the Company." Wood continued, "Our board views debt reduction and capital management as key factors in our ability to execute on our operating business plan."
The contents of this release were filed with the Securities and Exchange Commission pursuant to Form 8-K. Additional information is available for free on the SEC's website at www.sec.gov.
About GlobalNet Corporation
GlobalNet Corporation, a Voice over Internet Protocol (VoIP) services company, provides outbound telecommunications traffic to Latin America and counts among its customers both Tier 1 and Tier 2 carriers. GlobalNet provides international voice, data, fax and Internet services on a wholesale basis over a private IP network to international carriers and other communication service providers in the U.S. and internationally. GlobalNet's state-of-the-art IP network, utilizing the convergence of voice and data networking, offers customers economical pricing, global reach and an intelligent platform that guarantees fast delivery of value-added services and applications. More information may be obtained from our website at www.gbne.net.
Safe Harbor for Forward-Looking Statements
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price, volatility, product demand, market competition, risk inherent in the Company's domestic and international operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings.
