SOURCE: Alentus

October 12, 2010 08:30 ET

Alentus Corporation Completes Substantial Debt Restructuring

LAS VEGAS, NV--(Marketwire - October 12, 2010) -  Alentus Corporation (PINKSHEETS: ALNS), a web hosting, domain registrar, dedicated server, colocation, and E-Commerce hosting provider today announced the restructuring of most of its outstanding debt. 

Alentus is pleased to announce that it has reached restructuring agreements with nearly all of its outstanding debt holders. These agreements will substantially reduce the total amount of interest payments required to service current debt, from over $220,000 per quarter to less than $50,000. The reduction was accomplished through a combination of lower interest rates (now typically four percent) and conversion of a portion of the debt into non-dividend, non-interest bearing convertible preferred equity. The converting debt holder parties agreed to a six cent ($0.06) per share valuation for the newly issued preferred stock. In addition, the restructured debt will have a long term payback period (typically two years interest only, followed by a five year amortization), and is convertible into common stock at prices ranging from seven ($0.07) to nine cents ($0.09) per share. Alentus Chairman and CEO William King stated, "This is a very substantial milestone for our company and its investors. The long and difficult process has now come to a successful closure. The strength of our core business provided the staying power we needed to make it through the process despite the recent global recession and financial crisis. We believe these restructuring actions will have immediate benefit to all Alentus investors including common stock holders. More details of the restructuring and its impact on our balance sheet and shareholder equity will be contained in our upcoming 3Q2010 financials; we expect those will be filed before the standard deadline." King also added, "This process has consumed a significant amount of time of our senior management team and now that it has been successfully completed we are excited about the prospects of applying that time and energy to aggressively growing the business through new product launches and new customer acquisitions."

About Alentus Corporation ( , US Stock Ticker: ALNS)
Alentus Corporation is a multinational, US based, Internet focused solution provider with a network of data and network operations center facilities in Canada, the United States and United Kingdom. The company provides a wide range of Internet based solutions under several brands. Under these brands Alentus provides solutions that include Microsoft Windows hosting, RedHat Linux website hosting, Sharepoint hosting, SQL and mySQL database hosting, Microsoft Exchange Hosting, Virtual Private Servers (VPS), dedicated server solutions, colocation, and domain name registration to thousands of small- to medium-sized companies and customized solutions to larger organizations including many Fortune 500 clients.

Forward-looking statements:
The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

Contact Information

  • Investor Relations Contact:

    David Sasso
    American Capital Ventures
    2875 N.E. 191st Street, Suite 904
    Aventura, Florida 33180
    (305) 918-7000
    Email Contact