The Murdock Group Realizing Phase Two Restructuring Results
December 06, 2000 4:33:00 PM ET
SALT LAKE CITY, Dec. 6 /PRNewswire/ -- The Murdock Group Holding Corporation
(OTC Bulletin Board: TMGS), announced today that its second phase of
restructuring is on track with expectations. The company announced its
restructuring plans in September 2000. In October the company realized
significant benefit from its aggressive efforts to decrease debt and restructure
operations. As outlined in the company's recent quarterly report this resulted
in the reduction of over $4,000,000 in debt in October with the completion of
phase one of the restructuring. The company estimates that these interest and
operations expense reductions resulted in annual cost savings of approximately
$2,200,000.
The second phase of restructuring commenced in November. The company estimated
that during this phase it would reduce liabilities by approximately $6,000,000
and realize additional annual cost savings of approximately $1,600,000. The
company has announced that phase two has been completed with liability
reductions coming from a combination of real estate portfolio sales,
debt-to-equity conversions into common stock, and additional paid in capital by
shareholders. Details will be released shortly followed by an outline of the
anticipated results of its phase three of the debt reduction plan now underway.
"Our five-phase plan to strengthen the company's financial condition by drastic
debt reduction, cash flow acquisitions and expense reduction is continuing on
schedule," stated KC Holmes, CEO. "We will continue to focus on growth in our
core competency areas and to find ways to control costs, thereby creating value
for our shareholders." About The Murdock Group Founded in 1983, The Murdock
Group has emerged as a business incubator with emphasis in the employment
industry. The Murdock Group has incubated Internet offerings MyJobSearch.com, an
employment portal, and CareerWebSource, a BtoB employment information company,
as well as a full service brick and mortar career-coaching provider. The Murdock
Group also has a real estate development group specializing in small to midsize
entitlement projects. Forward-looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these
statements are made to convey the company's progress, business opportunities and
growth prospects, readers are cautioned that such forward looking statements
represent management's opinion. Actual company results may differ materially
from those described. The company's operations and business prospects are always
subject to risk and uncertainties. A more extensive listing of risks and factors
that may affect the business prospects of the Company and cause actual results
to differ materially from those described in the forward-looking statements can
be found in the reports and other documents filed by The Murdock Group with the
Securities and Exchange Commission.
(C) 2000 PRNewswire
