INWOOD, NY, Jan 16 (MARKET WIRE) --
Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6)
(FRANKFURT: CD6) (FRANKFURT: 217026) today announced its subsidiary, Cargo
Connection Logistics - International, Inc. has terminated its lease in
Chicago with Underwing International for its 92,000 sq. ft. Chicago facility and
leased the facility directly from the owner. As a result, the Company has
eliminated more than $1 million in current liabilities. Cargo Connection
Logistics Holding, Inc. guaranteed the obligations of Cargo Connection
Logistics - International, Inc. under the new lease, and certain additional
credit enhancement was provided.
"As part of our continuing efforts to improve the Company's financial
condition and
position, we have negotiated a favorable agreement with all parties involved
in the old lease," said Cargo Connection Logistics Holding, Inc. CEO, Jesse
Dobrinsky. "In connection with Cargo Connection Logistics - International
agreeing
to a new ten-year lease, the landlord has forgiven more than $1 million in
liabilities. This new lease allows the Company to continue to operate in its
current facility without disruption, while also allowing us to unwind a previous
related party transaction with Underwing International, LLC."
"The management of MP Cargo has witnessed firsthand the positive
developments in
our Chicago hub, which has become an increasingly valuable part of our
business,"
said Dobrinsky. "In the last year alone, we have entered into agreements
relating to our Chicago facility with Rexam Beverage Can Company, a subsidiary
of Rexam PLC, to provide just-in-time inventory and warehouse services, and also
with
AIT Worldwide Logistics to assist with hub operations for its domestic
ground network."
London-based Rexam PLC is one of the world's leading consumer packing groups
and
the world's leading manufacturer of beverage cans. AIT Worldwide Logistics
is one of the top 25 freight forwarders in the United States.
Last week, Cargo announced it had converted an $800,000 short-term
obligation with
Emplify HR Services, Inc. into a four-year secured promissory note, which is
guaranteed by certain of the Company's subsidiaries. The Company said this move
will both enhance its balance sheet and free up additional working capital.
About Cargo Connection Logistics Holding, Inc.
The Company, through its subsidiaries Cargo Connection Logistics Corp. and
Cargo Connection Logistics - International, Inc., is a leader in world trade
logistics. The Company headquarters is in Inwood, NY, and it also has offices
in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York,
NY; and Pittsburgh, PA. Headquartered adjacent to JFK International Airport,
the Company is a transportation logistics provider for shipments imported into
and
exported out of the United States, with service areas throughout the United
States and North America. The Company currently provides a comprehensive variety
of transportation and warehouse capacity services to shippers throughout the
nation. It also operates a bonded General Order warehouse in New York and
Container Freight Station operations, which are specifically designed to handle
internationallyarriving freight for major retail suppliers through its
facilities in
Florida, Georgia, Illinois, New York and Ohio.
Cargo Connection Logistics' website is www.cargocon.com.
Future-Looking Statements Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor"
for forward-looking statements. Certain of the statements contained herein,
which
are not historical facts, are forward-looking statements with respect to
events, the occurrence of which involve risks and uncertainties. These
forward-looking
statements may be impacted, either positively or negatively, by various
factors. Information concerning potential factors that could affect the Company
is detailed from time to time in the Company's reports filed with the
Securities and Exchange Commission, including, without limitation:
-- the Company's ability to increase its revenues, including by obtaining
contacts with foreign shippers and by acquisition of competing businesses
such as Fleet Global Services, Inc.;
-- the Company's financial condition, including its ability to continue
as a going concern;
-- the Company's ability to operate in compliance with the terms of its
financing facilities (particularly the financial covenants);
-- the Company's ability to maintain adequate liquidity and produce
sufficient cash flow to meet the Company's capital expenditure plans;
-- the number and magnitude of customers;
-- changes in, or the failure to comply with, government and regulatory
policies;
-- the Company's ability to obtain regulatory approvals and to maintain
approvals previously granted;
-- uncertainty relating to economic conditions generally and particularly
affecting the markets in which the Company operates;
-- the effect of the Company being in default on its indebtedness;
-- the Company's ability to raise additional capital, including to the
extent necessary to consummate its acquisition of Fleet Global Services,
Inc.;
-- the Company's reliance on key personnel and independent agents;
-- the Company's vulnerability to economic and industry conditions;
-- changes in the Company's business strategy, development plans or cost
savings plans;
-- the Company's ability to complete acquisitions or divestitures and to
integrate any business or operation acquired;
-- the Company's ability to enter into strategic alliances or other
business relationships;
-- the Company's ability to overcome significant operating losses;
-- the frequency and severity of accidents, particularly involving the
Company's trucking operations;
-- the Company's ability to reduce costs;
-- technological developments and changes in the industry;
-- the Company's ability to develop products and services and to
penetrate existing and new markets; and
-- changes in the competitive environment in which the Company operates.
Contact:
Peter Nasca
Peter Nasca Associates, Inc.
954-473-0677 Ft. Lauderdale
312-527-1044 Chicago
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