Tactical Air Defense Services is the Subject of a Frivolous Action
CARSON CITY, Nev., Aug. 5 /PRNewswire-FirstCall/ -- Tactical Air Defense Services, Inc. (OTC Bulletin Board: TADF), an Aerospace/Defense Services contractor that offers air-combat training, aerial refueling, aircraft maintenance, disaster relief services, and other Aerospace/Defense services to the United States and Foreign militaries and agencies, is not pleased to announce that it is again the subject of a frivolous and improper Involuntary Chapter 7 Petition designed to circumvent the civil litigation that TADF is currently pursuing against various defendants, and to intentionally and maliciously injure and discredit TADF.
As disclosed in Tactical Air Defense Services, Inc.'s (the "Company") Form 10-K for the period ending December 31, 2009 filed with the United States Securities and Exchange Commission on April 15, 2010, on March 4, 2010, the Company filed litigation against Mark Daniels, the Company's former President and Chief Executive Officer, and various entities affiliated with or controlled by Mr. Daniels, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida, for temporary and permanent injunctive relief, damages, and other relief for breach of contract, breach of fiduciary duty and duty of loyalty, tortuous interference with advantageous and contractual relationships, and for misappropriation, misuse, and conversion of trade secrets and confidential business information.
In an effort to circumvent the legitimate civil court process, on May 7, 2010, Mr. Daniels filed an improper and frivolous Involuntary Chapter 7 Petition (the "Petition") against the Company in the United States Bankruptcy Court for the Southern District of Florida,
On May 14, 2010, Chief Justice Paul G. Hyman issued a Court Order (the "Court Order") granting an emergency Motion to Dismiss the Involuntary Chapter 7 Petition, such that:
- The Court Order dismissed Mr. Daniels' involuntary petition, with prejudice to any subsequent involuntary petition by Mr. Daniels (i.e.. he is barred from re-filing an involuntary petition), or, by any insider or affiliate of Mr. Daniels; and
- the Court Order mandated that Mr. Daniels cannot pursue any efforts or take any actions to solicit, recruit, encourage, or cause any other alleged creditor of the Company to file an involuntary bankruptcy petition against the Company.
Nevertheless, on August 3, 2010, certain affiliates and business associates of Mr. Daniels filed an improper and frivolous Involuntary Chapter 7 Petition (the "New Petition") against the Company in the United States Bankruptcy Court for the Southern District of Florida, in an effort to circumvent the legitimate court process, in direct violation of the Court Order issued by Judge Paul Hyman on March 14, 2010.
The Company is immediately requesting an emergency Motion to Dismiss the New Petition based upon its contention that:
- The New Petition violates the Court Order because it was solicited, recruited, encouraged, or caused by Mr. Daniels;
- The majority of the new petitioners are affiliates and business associates of Mr. Daniels;
- A majority of the new petitioners are currently involved in civil litigation with TADF; and
- All of the claims of the new petitioners are either without merit, are being contested, or are frivolous and improper.
As such, the Company believes, although no assurances can be given, that the New Petition will be summarily dismissed by United States Bankruptcy Court, and TADF fully intends to vigorously request and pursue sanctions and damages against Mr. Daniels and the new petitioners to the fullest extent of the law.
Alexis C. Korybut, Chief Executive Officer of TADF, stated, "Although it is troublesome to see that Mr. Daniels and others continue to attempt to circumvent the legitimate legal process through underhanded and malicious acts, I remain confident that the legitimate legal process will prevail over the frivolous and fraudulent activities of Mr. Daniels and his associates, and TADF remains on a clear path to fulfill the hopes and expectations of our shareholders."
Further information about TADS is available on our website: www.tads-usa.com.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations and assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to have been correct. Some of these uncertainties include, without limitation, the company's ability to perform under existing contracts or to procure future contracts. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, successful implementation of our business strategy and competition, any of which may cause actual results to differ materially from those described in the statements. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
