TYLER TECHNOLOGIES ANNOUNCES APPROVAL OF PLAN OF REORGANIZATION FOR SWAN TRANSPORTATION COMPANY |
Dallas, Texas, December 11, 2002 —Tyler Technologies, Inc. (NYSE: TYL) announced today that the U.S. Bankruptcy Court for the District of Delaware confirmed the plan of reorganization for Swan Transportation Company, a non-operating subsidiary of Tyler. The plan of reorganization received the affirmative vote of approximately 99% of the votes cast. All objections to the plan were resolved prior to the confirmation hearing, and therefore, the final confirmation order will not be subject to appeal.
Swan was involved in various claims raised by former employees of a foundry that was once owned by an affiliate of Swan and Tyler. The claims are for alleged work-related injuries and physical conditions resulting from alleged exposure to silica, asbestos, and/or related industrial dusts. Tyler sold the operating assets of the foundry in 1995. On December 20, 2001, Swan filed a petition under Chapter 11 of the U.S. Bankruptcy Code, following extensive negotiations and agreements between Tyler, Swan, their respective insurance carriers, and representatives of the then known plaintiffs.
Under the plan, a trust will be created for the benefit of present and future claimants and will be funded principally by insurance carriers. Tyler will transfer the stock of Swan to the trust and will make cash contributions to the trust totaling $1.5 million over three years. Because the ultimate amount of the settlement does not exceed the estimated settlement liability previously recorded in Tyler’s consolidated financial statements, the implementation of the plan is not expected to have a material adverse effect on the Company’s financial position or results of operations.
The confirmation order discharges, releases, and extinguishes all of the foundry-related obligations and liabilities of Tyler, Swan, their affected affiliates, and the insurers participating in the funding of the trust. Further, the confirmation order includes the issuance of injunctions that channel all present and future foundry-related claims into the trust and forever bar any such claims from being asserted, either now or in the future, against Swan, Tyler, their affected affiliates, and the participating insurers. The confirmation order will become a final order thirty days after execution by both the bankruptcy and district court judges.
John M. Yeaman, Tyler’s President and CEO, commented, “We are very pleased to be released from this contingent liability and to have this matter behind us.”
Based in Dallas, Tyler Technologies is a leading provider of end-to-end information management solutions and services for local governments. Tyler partners with clients to make local government more accessible to the public, more responsive to needs of citizens, and more efficient in its operations. Tyler's client base includes nearly 6,000 local government offices in 49 states, Canada and Puerto Rico. More information about Tyler Technologies can be found on the World Wide Web at www.tylertechnologies.com.
Tyler Technologies, Inc. has included in this press release "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning its business and operations. Tyler Technologies expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any change in its expectations. These expectations and the related statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, changes in competition, changes in general economic conditions, changes in the budgets and regulatory environments of the Company's customers, risks associated with the development of new products and the enhancement of existing products, the ability to attract and retain qualified personnel, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Dec 11, 2002 |
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