Contact Information: Contacts: Chuck Coppa CFO Or Lyle Jensen CEO GreenMan Technologies 800-526-0860
GreenMan Technologies, Inc.'s Inactive Georgia Subsidiary Files Chapter 7
| Source: GreenMan Technologies, Inc.
SAVAGE, MN--(Marketwire - June 27, 2008) - GreenMan Technologies, Inc. (OTCBB : GMTI ), a
leading regional tire recycler and emerging leader in patented cold-cure
recycled rubber molded products, announced that its inactive GreenMan
Technologies of Georgia, Inc. subsidiary has filed a voluntary petition
under Chapter 7 of the United States Bankruptcy Code in the United States
Bankruptcy Court, Middle District of Georgia.
As previously disclosed, due to significant continued operating losses,
GreenMan Technologies of Georgia, Inc. ceased operations during early 2006
and disposed of all remaining assets in March 2006. All of the proceeds
received from that disposition of assets were retained by our secured
lender and GreenMan Technologies of Georgia, Inc. has no assets. As a
result of this filing, and the ultimate deconsolidation of the subsidiary
from GreenMan Technologies, Inc. for financial reporting purposes, the
Company anticipates recognizing a one-time, non-cash miscellaneous gain
from discontinued operations of approximately $2.4 million. The Company
does not anticipate any additional material impact to its business.
About GreenMan Technologies
GreenMan Technologies pursues technological processes and unique marketing
programs to transform recycled materials into renewable fuel, alternative
energy, recycled feedstock, and innovative recycled products. Over twelve
million tires are collected and recycled annually into tire-derived fuel,
tire-derived aggregate, and crumb rubber feedstock for playground, athletic
track and field, and road surfacing. Through GreenMan's subsidiary, Welch
Products, the company develops and markets branded products and services
that provide schools and other political subdivisions viable solutions for
safety, compliance, and accessibility. To learn more about all of the
companies, please visit the following websites:
www.greenman.biz
www.welchproducts.com
www.nssi-usa.com
www.playtribe.com
"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act
With the exception of the historical information contained in this news
release, the matters described herein contain "forward-looking" statements
that involve risk and uncertainties that may individually or collectively
impact the matters herein described, including but not limited to the
possibility that we may not be able to secure the financing necessary to
return to sustained profitability, our ability to successfully integrate
the recent Welch Products acquisition and realize the anticipated benefits,
the possibility that we may not realize the benefits of product acceptance,
economic, competitive, governmental, seasonal, management, technological
and/or other factors outside the control of the Company, which are detailed
from time to time in the Company's SEC reports, including the Quarterly
Report on Form 10-QSB for the fiscal period ended March 31, 2008. The
Company disclaims any intent or obligation to update these
"forward-looking" statements.