Cronos (NASDAQ:CRNS)
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From May 2019 to May 2024
The Cronos Group (NASDAQ:CRNS) today announced that it
has purchased all the known creditors' claims against Transocean
Equipment Manufacturing and Trading Limited ("TOEMT"). As a result of
the acquisition of the creditors' claims, Cronos believes that it will
now be able to bring to a conclusion the litigation brought against
Cronos in the U.K. Cronos recognized a charge of approximately $4.1
million in the fourth quarter of 2005 as a result of an agreement it
entered into with an unrelated party. Cronos expects to see a
significant reduction in litigation expenses in 2006.
The liquidator of TOEMT filed his claims against Cronos in
December 2004, alleging that Cronos wrongfully participated in the
diversion of funds from TOEMT, dating back to 1991. The liquidator has
claimed damages against Cronos of "at least" $41 million, plus
interest and costs. Although Cronos believes that the claims are
without merit, the Company also believes that the time and legal
expenses required to defend the action would be excessive, and
detrimental to the day to day operations of the Company's business.
Dennis J. Tietz, Chairman and CEO of Cronos said, "With the
purchase of the claims of the only known creditors of TOEMT, we intend
to exercise our rights as creditor to bring an end to the litigation
brought by the liquidator against Cronos. Now that we are the real
party in interest in the TOEMT insolvency proceedings, there is no
point to the prosecution of the litigation brought by the liquidator
against Cronos."
Mr. Tietz added, "Even though we are confident that the
liquidator's claims are without merit, and we are prepared to
vigorously defend our position, we also felt it was time to take
advantage of the opportunity to purchase the claims of the TOEMT
creditors as a means to spare our shareholders, customers, and
employees the uncertainty and cost of protracted litigation. We have
taken a significant step toward the elimination of the distraction of
this litigation, which will enable us to focus 100% on our business."
Cronos is one of the world's leading lessors of intermodal
containers, owning and managing a fleet of over 446,000 TEU
(twenty-foot equivalent units). The diversified Cronos fleet of dry
cargo, refrigerated and other specialized containers is leased to a
customer base of approximately 450 ocean carriers and transport
operators around the world. Cronos provides container-leasing services
through an integrated network of offices through state-of-the-art
information technology.
This release discusses certain forward-looking matters that
involve risks and uncertainties that could cause actual results to
vary materially from estimates. Risks and uncertainties include, among
other things, changes in international operations, exchange rate
risks, changes in market conditions for the Company's container lease
operations and the Company's ability to provide innovative and
cost-effective solutions. For further discussion of the risk factors
attendant to an investment in the Company's common shares, see the
Introductory Note in the Company's Annual Report on Form 10-K that was
filed with the SEC on March 22, 2005.
This press release and other information concerning Cronos can be
viewed on Cronos' website at www.cronos.com.