EXHIBIT 99.1
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PRESS RELEASE
FOR IMMEDIATE RELEASE
TOWER TECH FILES FOR VOLUNTARY CHAPTER 11 PROTECTION
IN MOVE TO RESOLVE INDEBTEDNESS
OKLAHOMA CITY, OK - December 19, 2000 - Tower Tech, Inc. (OTC: TTMT.OB) today
said it filed for voluntary reorganization under Chapter 11 of the U.S.
Bankruptcy Code in Oklahoma City in order to resolve its past due indebtedness.
The company said that it expects to continue operations in Chapter 11 by
supplying products and services to existing and new customers. It also said it
intends to pay suppliers on normal terms for goods delivered and services
provided after the Chapter 11 filing.
To enhance its liquidity, Tower Tech said it expects to receive
debtor-in-possession financing from an investor group that has provided
financing to the company on previous occasions. The company said that the cash
demands of its past debt are so great that they threaten the long-term viability
of the company and its unique patented technology. In addition, the company said
that liquidity concerns have had an adverse impact on market share and that
Chapter 11 will be a stabilizing influence that should enable it to recapture
lost market share.
"Tower Tech has been the technology leader in the cooling tower business," said
Robert Brink, the company's recently elected CEO. "The company has not been able
to meet its financial obligations for some time now and has attempted to
restructure its finances out of court. It has received tremendous cooperation
from creditors who want to see the company and its unique technology survive.
Unfortunately, the company's debt load has prevented it from raising the amount
of new funding needed to accomplish an out-of-court restructuring. Given this,
filing for protection under Chapter 11 was the best option for Tower Tech's
customers, suppliers, employees and other interestholders."
The company said that while operating in Chapter 11 it expects to have the
resources it needs to continue production and maintain other normal operations.
At the same time, Chapter 11 will give it the opportunity to use the
court-supervised reorganization process to resolve its debt. This should enable
the company to emerge from Chapter 11 stronger and better positioned than it is
now.
The company began developing innovative industrial water cooling technology in
1992. It believes that its modular cooling towers are less expensive to operate
because they use less energy and water than conventional cooling towers. To
date, the company and its distributors and offshore licensees have sold
approximately $115 million of products containing Tower Tech patented
technology. Additional information about the company and its Chapter 11 filing
can be found on the Internet at www.TowerTechInc.com.
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ANY FORWARD-LOOKING STATEMENTS IN THIS RELEASE COULD INVOLVE A NUMBER OF RISKS
AND UNCERTAINTIES. THESE RISKS AND UNCERTAINTIES MAY CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM EXPECTED RESULTS AS A RESULT OF KNOWN AND UNKNOWN RISKS
AND UNCERTAINTIES AND OTHER FACTORS, INCLUDING, BUT NOT LIMITED TO: THE
COMPANY'S ABILITY TO SECURE SUFFICIENT ADDITIONAL CAPITAL AND FINANCIAL
LIQUIDITY; GREATER THAN EXPECTED WORKING CAPITAL REQUIREMENTS; VARIATIONS IN
MATERIAL, LABOR AND ENERGY COSTS; SUCCESS IN ACHIEVING MANUFACTURING
EFFICIENCIES; PRODUCT AND PRICE COMPETITION; BUSINESS COMBINATIONS AMONG
COMPETITORS AND SUPPLIERS; AND OTHER RISKS, UNCERTAINTIES AND FACTORS AS
DISCLOSED IN THE MOST RECENT REPORT ON FORMS 10-K, 10-Q AND 8-K AS FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO
UPDATE ANY FORWARD-LOOKING STATEMENT. THESE AND OTHER RISKS ARE DESCRIBED IN
DETAIL IN TOWER TECH'S DOCUMENTS AND REPORTS FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION. FOR ADDITIONAL COMMENTS, CONTACT CHARLES D. WHITSITT.
Mr. Charles D. Whitsitt
Chief Financial Officer
Tower Tech, Inc.
(405) 290-7788
[email protected]
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