New Century Negotiates Favorable Reset and Extension of Senior Debt
LOS ANGELES, CA--(MARKET WIRE)--Jul 1, 2008 -- New Century Companies, Inc. (OTC BB:NCNC.OB - News),
a leading manufacturer and re-manufacturer of machine tools,
today
announced it has successfully negotiated new and favorable
terms for the
Company's long-term senior debt. Pursuant to the agreement,
the senior
lender will waive specific interest and penalties incurred
from default of
its original agreements. The new principal balance has been
substantially
reduced and the maturity extended until August 2010. Payments
for the new
note will commence August 1, 2008. The lender has further
agreed to cancel
all warrants previously issued under the original agreements
in exchange
for less warrants at, and above, current NCNC stock prices.
"We are very appreciative to have a senior lender who had
the patience and
understanding to work with our company to resolve these
past issues in
difficult times," stated David Duquette, the Company Chief
Executive. "We
look forward to working with them closely in the future
and I am grateful
to all parties who helped to make this possible."
About New Century Co.
New Century Companies, Inc. is one of the leading U.S.-based
makers of
machine tools, primarily vertical boring mills and large
lathes such as
vertical turning centers (VTCs). It specializes in re-manufacturing,
starting with existing major castings and fitting them with
state-of-the-art, computer-controlled equipment. These products
generally
cost 40% to 60% less to make than new ones. New Century
passes these
savings on to its customers, which include such leading
manufacturers as
General Electric Co., General Dynamics Corp., Siemens AG
and Gardner
Denver. New Century machines are used to manufacture jet
engine components,
airplane landing gear parts, power generation equipment,
oil and gas
production components and construction materials, to name
just a few
applications. New Century's production facility is in Santa
Fe Springs, CA.
For more information please visit New Century's Web site
at
www.newcenturyinc.com.
In order to receive regular updates on NCNC, please click
on the following
link: http://newcenturyinc.ir.stockpr.com.
Safe Harbor
Forward-looking statement: Except for historical information,
this press
release contains forward-looking statements, which reflect
the Company's
current expectation regarding future events. These forward-looking
statements involve risks and uncertainties, which may cause
actual results
to differ materially from those statements. Those risks
and uncertainties
include, but are not limited to, changing market conditions
and other risks
detailed from time to time in the Company's ongoing quarterly
filings,
annual information form, and annual reports. We undertake
no obligation to
publicly update or revise any forward-looking statements,
whether as a
result of new information, future events or otherwise. In
light of these
risks, uncertainties and assumptions, the forward-looking
events in this
press release might not occur.
