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EXHIBIT 99.1
CONTACT: Peter Willis
Hotelworks.com, Inc.
(305) 774-3206
FOR RELEASE 8 A.M. TUESDAY SEPT. 5, 2000
HOTELWORKS.COM, INC. ANNOUNCES SUCCESSFUL REFINANCING OF ITS
OUTSTANDING INDEBTEDNESS WITH BANK OF AMERICA, N.A. AND HSBC BANK USA
CORAL GABLES, FL (SEPTEMBER 5, 2000) - Hotelworks.com, Inc. (AMEX:HWS)
announced that it has successfully negotiated and executed an Amended and
Restated Loan Agreement with Bank of America, N.A., and has reached an agreement
in principle on a restructured financing with HSBC Bank USA.
The refinanced loan with Bank of America in the amount of $6.8 million, will be
secured by the assets and stock of Bekins Distribution Services, Inc., a wholly
owned subsidiary of Hotelworks.com. The $6.8 million loan, which provides
approximately $800,000 in working capital for the Company and replaces the
company's defaulted credit facility, will mature in 3 years with interest at the
banks' prime rate for the first 18 months, subject to quarterly rate increases
based on outstanding balances thereafter. Upon execution of the Amended Loan
Agreement, Bank of America has agreed to dismiss its legal action against the
Company.
The agreement in principle with HSBC Bank, which is subject to negotiation and
execution of definitive documents, also involves a three-year term loan, a
reduction in principal and the issuance of equity from the Company to HSBC Bank.
Douglas Parker, President & CEO of Hotelworks stated, "We are extremely pleased
with the result of our extensive negotiations with Bank of America and HSBC
Bank, and view this as a critical step toward achieving our goals of improving
the long term financial position of Hotelworks.com. We look forward to devoting
all of our attention to growing the business and creating enhanced shareholder
value."
Hotelworks.com, through its offices in the United States, Middle East, Asia,
South Africa and Europe, is one of the world's leading providers of goods and
services to the global hospitality industry. The company headquartered in Coral
Gables, Florida, services such customers as Hyatt, Marriott International,
Hilton, Ritz Carlton, Four Seasons, Wyndham, Accor and Sun International. For
more information about Hotelworks, please visit our web-site,
http://www.Hotelworks.com.
THE STATEMENTS CONTAINED IN THIS RELEASE WHICH ARE NOT HISTORICAL FACTS
MAY BE DEEMED TO CONTAIN FORWARD-LOOKING STATEMENTS WITH RESPECT TO EVENTS, THE
OCCURRENCE OF WHICH INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, WITHOUT
LIMITATION, DEMAND AND COMPETITION FOR THE COMPANY'S SERVICES, AND OTHER RISKS
OR UNCERTAINTIES DETAILED IN THE COMPANY'S SECURITIES AND EXCHANGE COMMISSION
FILINGS.
