CAMPBELL, CA -- (Marketwire) -- 05/11/09 -- Focus Enhancements, Inc., a worldwide leader in digital audio technology and media management solutions, announced its Second Amended Plan of Reorganization ("Plan of Reorganization") became effective today, May 11, 2009, allowing the company to emerge from Chapter 11 bankruptcy protection.
Brett Moyer, President and CEO of Focus Enhancements, Inc., stated, "Emerging from Chapter 11, Focus Enhancements is in a much stronger financial position to manage its worldwide operations, drive technical innovation and ship its industry leading solutions worldwide."
In connection with the Plan of Reorganization, $2.5 million of Debtor in Possession financing will be converted to equity and, Carl E. Berg and Ingalls & Snyder LLC as agent for a group of investors will own 100 percent of Focus Enhancements Inc. outstanding stock.
In accordance with the Plan of Reorganization, all equity interests in Focus Enhancements Inc. including holders of common stock, preferred stock, stock options and warrants, outstanding immediately prior to effective date (May 11, 2009), are deemed cancelled, terminated, rejected and of no further force and effect and no longer constitute an equity interest in Focus Enhancements Inc. without the need for either Focus Enhancements Inc. or the equity interest holders to take any further action.
With fewer than 300 stockholders, Focus Enhancements Inc. plans to immediately seek to remove itself from the reporting requirements under the Securities and Exchange Act and operate as a private company.
About Focus Enhancements, Inc.
Focus Enhancements, Inc., headquartered in Campbell, CA, is a leading designer of world-class solutions in advanced video and audio technologies. The company's System Group develops video products for the digital media markets, with customers in the broadcast, video production, digital signage and digital asset management segments. The company's Semiconductor Division develops application specific standard products (ASSPs), which address the audio distribution and the TV-out video encoder markets. The audio IC specifically addresses the digital wireless audio (DWA) segment which includes home theater, AVR, DTV, DVD, IPOD, set-top box, PC, and PC gaming systems for surround sound. In addition, Focus Enhancements designs and markets portable ICs to the portable media, navigation systems and smartphone markets for TVout functionality. More information on Focus Enhancements may be obtained by visiting the Focus Enhancements website at http://www.focusinfo.com.