Ajay Sports, Inc. announced a significant gain as a result of a Mutual General Release of debt with Wells Fargo Bank. Effective August 30, 2005 Ajay Sports and its subsidiaries have negotiated a Mutual General Release of the debt owed by Ajay to Wells Fargo Bank. The outstanding balance of this debt was approximately $2.4 million, as of December 31, 2002, and interest had been accruing through August 30, 2005, the date of negotiated Mutual General Release. Ajay paid $11,500 to Wells Fargo Bank, and agreed to transfer and quitclaim to Wells Fargo Bank all the rights and interests of the collateral, which included 156,719 common shares of Williams Controls, Inc stock (WMCO), in exchange for the mutual release and discharge of all claims involving Ajay and Wells Fargo Bank.
This transaction will cause a significant positive impact on the financial statements of Ajay Sports, and will be reported after a complete review and analysis by the Ajay Sports Certified Public Accountants (UHY, LLC) and Audit Committee.
“Ajay Sports is working diligently to clean up some long standing financial hurdles, and we have seen a dramatic restructuring of the company in an effort to improve the bottom line and profitably grow the assets of the organization with an emphasis on our ownership in Pro Golf International”, says Brian Donnelly, President & COO.