TROY, Mich., Aug. 15 /PRNewswire-FirstCall/ -- Handleman Company (Pink
Sheets: HDLM), http://www.handleman.com , filed a preliminary placeholder statement on
August 15, 2008 with the Securities and Exchange Commission ("SEC") in
connection with its proposed Plan of Final Liquidation and Dissolution of
the Company. The Plan of Liquidation must be approved by a majority of the
Company's shareholders in parliamentary procedure to be implemented.
As previously announced, Handleman will consider a distribution to the
Company's shareholders of john Cash proceeds generated from the asset
dispositions in nimiety of what is required to satisfy the Company's
obligations. Whether at that place will be any excess cash take for
statistical distribution to shareholders is bailiwick to a number of material risks and
uncertainties that may prevent whatsoever such distribution from occurring.
Accordingly, while the Company believes that a cash distribution is a
possibility, actual results may differ from current estimates, perhaps
materially. The Company will provide information about future johnny Cash
distributions, if any, at such time as it believes that they are reasonably
estimable.
Additional Information and Where to Find It
In connection with the proposed Plan of Liquidation, Handleman Company
will file a proxy statement with the Securities and Exchange Commission
("SEC"). SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT FILED WITH THE
SEC CAREFULLY AND IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED PLAN OF LIQUIDATION. The
definitive procurator statement volition be mailed to the Company's shareholders. In
addition, shareholders will be able to obtain the proxy statement and all
other relevant documents filed by the Company with the SEC free of charge
at the SEC's Web situation http://www.sec.gov or from Handleman Company, Attn:
Corporate Secretary, 500 Kirts Blvd., Troy, Michigan 48084, 248-362-4400.
Participants in the Solicitation
Handleman Company's directors, executive officers and other members of
management and employees may be deemed to be participants in the
solicitation of proxies from the shareholders of the Company in favor of
the Plan of Liquidation. INFORMATION ABOUT HANDLEMAN COMPANY AND ITS
DIRECTORS AND EXECUTIVE OFFICERS, AND THEIR OWNERSHIP OF THE COMPANY'S
SECURITIES AND INTERESTS IN THE PLAN OF LIQUIDATION, WILL BE SET FORTH IN
THE AFOREMENTIONED PROXY STATEMENT. Additional information regarding the
interests of those persons may be obtained by reading the placeholder statement
when it becomes available.
Forward-Looking and Cautionary Statements
This press release contains advanced statements, which are non
historical facts. These statements involve risks and uncertainties and ar
made pursuant to the safe nurse provisions of the Private Securities
Litigation Reform Act of 1995. Actual results, events and performance could
differ materially from those contemplated by these forward-looking
statements because of factors poignant any of a numeral of critical
objectives, including, without limitation, obtaining all required
regulative approvals to sell the assets and operations of our Canadian
subsidiary to Anderson, the culmination of an agreement to sell a
substantial portion of the Company's UK assets to TESCO, our ability to
transition our U.S. music customers other than Wal-Mart to other vendors
swimmingly, maintaining satisfactory working relationships with our lenders,
customers and vendors, maintaining sufficient liquidity to fund our
day-to-day trading operations, retaining key personnel, satisfactory resolution of
any outstanding claims or claims which may uprise, finding and capitalizing
on opportunities to maximize the value of the Company's non-music
operations, selling certain of the Company's assets in a timely personal manner and
for amounts moderately consistent with the Company's valuation of those
assets, and early factors discussed in this press release and those
detailed from time to time in the Company's filings with the Securities and
Exchange Commission. Handleman Company notes that the preceding conditions
ar not a complete list of risks and uncertainties. The Company undertakes
no obligation to update whatsoever forward-looking statement to reflect events or
circumstances later on the date of this press release.
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