The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Global Technovations Files For Reorganization; Company Receives Commitment For $1.5 Million in DIP Financing

    PALM BEACH GARDENS, Fla.--Dec. 19, 2001--Global Technovations, Inc. (AMEX:GTN) or ("GTI", or the "Company") announced today that the Company, the exclusive provider of the patented MotorCheck(TM) On-Site Oil Analyzer, "Blood Test For Your Car(TM)" technology, and four of its affiliates, On-Site Analysis, Inc., ARCS Safety Seat, Inc., Top Source Automotive, Inc., and Top Source Oil Analysis, Inc. filed for reorganization under Chapter 11 of the United States Bankruptcy Code. The filing, which was made in the United States Bankruptcy Court for the District of Delaware, will enable the Company to conduct business as usual with the Court's protection, while implementing its new business plan.
    Importantly, GTI also announced that it has received a $1.5 million debtor-in-possession (DIP) financing commitment from The Mennen Trust. The DIP facility will provide the parent company and its subsidiary, On-Site Analysis, Inc. ("OSA") with much-needed working capital to meet immediate and future operating cash flow needs and to fulfill the Company's business obligations, including all employee wages and new vendor invoices.
    Will Willis, Chairman and CEO of GTI, stated, "Although we have worked diligently to find alternative means to fund operations, the cessation of operations and liquidation of the Company's wholly-owned subsidiary, Onkyo America, Inc. ("Onkyo America") made it impossible to secure adequate working capital financing. The Chapter 11 reorganization of the Company and its affiliated debtors is intended to maximize the value of our assets for the benefit of creditors and position the surviving entity to emerge from this process in a stronger financial condition. Furthermore, the Chapter 11 filing will allow us to return our focus to expanding the distribution and use of the Company's MotorCheck(TM) technology."
    Global Technovations, Inc., develops, assembles and markets the patented MotorCheck(TM) and TruckCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box", solid state spectroscopic analyzers for liquid petroleum marker detection systems, the PetroAnalytics(TM) line of diesel fuel and gasoline properties analyzers for the automotive, truck and heavy-duty equipment service markets.

    Forward-Looking Statements

    The implications from the matters discussed in this press release relating to GTI's filing of Chapter 11 including the maximizing of assets and strengthening of its financial condition, is a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "expects", "intends", "believes" and similar words are used to identify forward-looking statements within the meaning of the Act.

    Some or all of these forward-looking statements may not occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Such risks and uncertainties include the following: (1) the continued reliability of the OSA technology over an extended period of time; (2) receipt of significant additional purchase orders for OSA units from Jiffy Lube to be installed during calendar 2002; (3) the extent and effectiveness of the Jiffy Lube marketing campaign relating to the OSA; (4) the ultimate success of the OSA units and the level of its acceptance by Jiffy Lube customers; (5) other orders for the OSA, (6) receipt of authorization by the United States Bankruptcy Court for the District of Delaware for the Company to use the $1.5 million DIP financing commitment, (7) the approval by the United States Bankruptcy Court for the District of Delaware for some or all of the immediate relief sought by the Company, and (8) the ability to secure additional post-petition financing beyond the initial $1.5 million commitment from the same or other financing sources. The Company does not intend to update any forward-looking statements. Investors should also consider the factors contained in the Company's filings with the Securities and Exchange Commission.