|Also Announces a New Credit Facility|
Datatec Systems, Inc. (DATC.PK) is an IT professional services firm focused exclusively on the configuration, staging and implementation of large-scale, complex, local and wide area networks incorporating a broad range of technology.
As has been previously announced, Raul Pupo, the Company's Chief Executive Officer, has formed a group of institutional and individual investors, including members of the company's current management team, to bid on the assets of the Company. The Company has today announced that Mr. Pupo's group, Eagle Acquisition Partners, has acquired all of the secured debt held by IBM Credit LLC and certain funds represented by The Palladin Group.
In connection with the Eagle Acquisition bid, Raul Pupo and Vern Holden, a Managing Director of Datatec and member of Eagle Partners, have resigned their positions at Datatec. The Company has appointed William J. Adams, Jr., a current member of the Company's Board of Directors and a member of the Company's Special Independent Committee, to serve as the Company's Interim Chief Executive Officer. Mr. Adams has been a member of the Company's Board of Directors since April 2000.
The Company intends over the next few days to begin the process of reorganizing its affairs under the Federal Bankruptcy Code under which Eagle Acquisition Partners intends to purchase substantially all of the assets of Datatec by credit bidding its debt in a sale of Datatec's assets under Section 363 of the Federal Bankruptcy Code.
In connection with the Company's imminent reorganization, it has obtained debtor-in-possession funding from Alpine Associates in the amount of $2.5 million. The financing will make the necessary funds available to Datatec during the reorganization process so that Datatec will not experience any disruptions in its business affairs.
In commenting on the acquisition, Mr. Adams stated "these announcements represent an exciting day for Datatec and its customers because as a result of the acquisition of our debt by Mr. Pupo's group and the establishment of a credit line with Alpine Associates, Datatec will be able to continue uninterrupted the high level of service that it provides its customers today."
About Eagle Acquisition Partners
Eagle Acquisition Partners is an investment group made up of individual and institutional investors, including Raul Pupo and Vern Holden as well as other key members of Datatec management and a former Board of Director, Walter Grossman. Eagle Acquisition Partners is committed to continuing the Company's focus on its core strengths of staging, configuration, and deployment services.
About Datatec Systems, Inc.
Datatec Systems specializes in the large-scale deployment of networking technologies. Datatec's deployment services utilize a software-enabled implementation model and 'best practices' structured process to ensure consistent outcomes. Datatec's customers include Fortune 1000 companies with large, complex, multi-branch environments and world class technology providers.
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties that may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements as more fully discussed in Datatec's filings with the Securities and Exchange Commission.