General Magic Files for Bankruptcy Protection
SUNNYVALE, Calif. — December 12, 2002 — General Magic, Inc. today announced that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court for the Northern District of California, San Jose Division.
The company continues in the possession of its properties and management of its affairs as a debtor in possession under Chapter 11. Although the company ceased its business operations as of Sept. 17, 2002, the Chapter 11 case will allow General Magic to continue marketing its assets and winding down its affairs by way of an orderly process to maximize return to creditors.
The company intends that the proceeds from the sale of its assets will be used to pay its creditors, but does not expect that there will be assets remaining for distribution to holders of its common or preferred stock.
General Magic notes that this press release contains forward-looking statements that speak only as of the date hereof, and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievement to differ materially from any results, performance or achievements expressed or implied by these statements. These include, among others, risks and uncertainties concerning the cessation of General Magic's business, and the adequacy of any proceeds to be recognized upon the sale of the company's assets to satisfy the claims of creditors. For discussion of risks and uncertainties concerning the business and assets of General Magic, please refer to our filings with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K, particularly those for the periods ended December 31, 2001, March 31, 2002 and June 30, 2002.
NOTE: General Magic and magicTalk are trademarks of General Magic, Inc., which may be registered in some jurisdictions.
SOURCE: General Magic, Inc.
CONTACT:
Leslie Green of Stapleton Communications Inc., +1-650-470-0200, for General Magic, Inc.