GRAND RAPIDS, Mich., Oct. 26 /PRNewswire-FirstCall/ -- Riviera Tool Company (Pink Sheets: RIVT.PK) ("Riviera" or "the Company") today announced that all of the assets and intellectual property of the Company had been foreclosed on by its primary secured lender, Laurus Master Fund, Ltd. ("Laurus").
The Grand Rapids, Mich.-based stamping company said the foreclosure of assets follows an August 2007 demand notice issued by Laurus, following a default by the Company on its loan agreements. Discussions between the Company and Laurus to extend or refinance the Company's existing credit agreement were unsuccessful. Pursuant to the foreclosure proceedings, in accordance with the Uniform Commercial Code, the Company was released from certain indebtedness to Laurus in exchange for the surrender of the Company's assets and intellectual property securing its obligations under the credit agreement.
As a result of the Foreclosure Agreement, the Company has no remaining operations and a de minimus amount of cash.
The Company said that following the foreclosure, Laurus sold the assets and intellectual property in an arms-length transaction to a privately held North American company, Riviera Tool, LLC doing business in Michigan as Riviera Tool Acquisition, LLC. The new owner intends to operate the Company at its current facility in Grand Rapids. The majority of the Company's 68 employees will be offered employment with the new owner.
About Riviera Tool
Riviera Tool Co. (http://www.rivieratool.com/) designs, develops and manufactures large-scale, custom metal stamping die systems used in the high- speed production of sheet metal parts and assemblies for the global automotive industry. A majority of Riviera's sales are to BMW, Nissan, General Motors Corp., Ford Motor Co. and their Tier One suppliers.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological.
