EXHIBIT 99.1
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CHS Electronics, Inc.
Investor and Media Relations:
(305) 908-7200
FOR IMMEDIATE RELEASE
CHS ELECTRONICS PLANS TO AMEND ITS CHAPTER 11 BANKRUPTCY
FILING TO A LIQUIDATING PLAN
-CHS' Chairman and Chief Executive Officer Resigns
Miami Florida, May 10, 2000 - CHS Electronics, Inc. (OTC:CHSWQ)
announced today that it plans to amend its voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code to be a liquidating plan. The
amended filing will continue to allow CHS and its subsidiaries to operate in a
normal manner while CHS seeks U.S. Bankruptcy Court approval of the plan which,
if approved, provides for the sale of CHS' European subsidiaries. Any remaining
assets would be liquidated with the proceeds subsequently distributed to CHS'
creditors.
Previously, CHS announced that it had filed a plan of reorganization
providing for the sale of CHS' European subsidiaries to Europa IT ApS, a Danish
corporation formed by Mark E. Keough, CHS' former chief operating officer, while
reorganizing CHS to become a holding company for internet companies. CHS
shareholders were to retain a 75% interest in the reorganized CHS. The amended
filing will include the proposed sale to Europa IT, but any remaining assets
would be liquidated for the sole benefit of CHS' creditors. There would be no
distribution to CHS' shareholders under the proposed plan. CHS would
subsequently cease its business activities. A plan confirmation hearing is
tentatively scheduled for July 11, 2000.
The Company also announced that Claudio Osorio resigned his positions
as Director and Executive Officer of CHS.
Miami-based CHS Electronics is an international distributor of
microcomputers, peripherals, and software in Europe, Latin America, Asia and the
Middle East. CHS believes it is one of the largest microcomputer distributors in
Europe.
Forward-looking statements by CHS Electronics made herein are based on current
expectations and may differ materially from actual results. Among the factors
that could cause actual results to differ materially are confirmation of the
liquidating plan, changes in business conditions, growth in the personal
computer industry and the general economy; competition; changes in
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product mix; the Company's ability to finance its operations; and the risk
factors listed by CHS Electronics' reports filed with the Securities and
Exchange Commission.
