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EXHIBIT 99.1
CONTACT: Peter Willis
Hotelworks.com, Inc.
(305) 774-3206
FOR IMMEDIATE RELEASE
HOTELWORKS.COM, INC. ANNOUNCES SUCCESSFUL REFINANCING OF ITS OUTSTANDING
INDEBTEDNESS WITH HSBC BANK USA
Coral Gables, Fl (December 20, 2000) - Hotelworks.com, Inc. (AMEX:HWS)
announced that it has successfully negotiated and executed an Amended and
Restated Loan Agreement with HSBC Bank USA.
The previously defaulted line of credit in the amount of $9,885,000 has been
replaced by two debt instruments and $1 million of convertible preferred stock.
Hotelworks.com signed a note with HSBC Bank in the amount of $4.3 million, with
a three-year term. The note bears interest at the bank's prime rate and calls
for monthly principal payments, with the remaining principal and accrued
interest due at maturity. Additionally, the Company's discontinued renovation
subsidiary, Hospitality Restoration and Builders, Inc. ("HRB"), assigned a
portion of its contract right in a receivable with a former customer, to HSBC
Bank; in the form of a five-year $4,585,000 note, bearing interest at the bank's
prime rate. This HRB note is secured solely by its interest in the receivable
and any collections are to be divided between HSBC Bank and the Company
according to a prescribed formula. The receivable is fully reserved on the books
of HRB, and the note is non-recourse to any other assets of Hotelworks.com or
its subsidiaries. The preferred stock issued to HSBC Bank is convertible into a
total of 1 million shares of common stock of Hotelworks.com, Inc.
The HSBC agreement, combined with the previously announced refinancing with Bank
of America in the amount of $6.8 million, brings all expired debt obligations
current and in good standing.
Douglas Parker, President & CEO of Hotelworks stated, "We are extremely pleased
with the result of our extensive negotiations with 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 maintaining the participation of
HSBC Bank as a lender and shareholder in the Company, while 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,
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
filing.
