TRW Smarting As SmarTire Fails to Meet Debt Obligations
RICHMOND, B.C. February 27, 2003; Dow Jones reported that SmarTire Systems Inc. has failed to meet debt obligations to TRW Inc. and SensoNor asa.
In a news release(see it below), SmarTire said failure to meet its obligations to TRW has resulted in the termination of the royalty-free perpetual right for it to use certain TRW patents respecting aspects of tire-monitoring systems.
One of those patents is used in SmarTire's current and proposed tire- monitoring systems. SmarTire said it has negotiated an agreement with the successor of TRW "whereby if the amount of $850,000 is paid to TRW's successor by March 7, 2003, in full settlement of the promissory note outstanding, the patent rights will be reinstated."
The company also said it has agreed to pay $500,000 to SensoNor for certain non-recoverable engineering fees. It has already paid to SensoNor $25,000 in cash and is in talks to resolve all outstanding issues, including a repayment schedule over the period ending July 15.
SmarTire develops and markets tire-monitoring systems for automotive aftermarkets.
Company Press Release:
SmarTire Systems Inc.
RICHMOND, BC, Feb. 27, 2003; SmarTire Systems Inc. announces that it is has failed to meet debt obligations to TRW, Inc. and SensoNor asa. Details are outlined in the Company's 8-K filing. This failure to meet debt obligations to TRW has resulted in the termination of the royalty free perpetual right for SmarTire to use certain TRW patents respecting aspects of tire monitoring systems. One of the TRW patents is used in SmarTire's current and proposed tire monitoring systems. SmarTire has negotiated with the successor of TRW, Inc. to reach an arrangement whereby if the amount of $850,000 is paid to TRW's successor by March 7, 2003, in full settlement of the promissory note outstanding, the patent rights will be reinstated.
SmarTire has agreed to pay to SensoNor a fee of $500,000 for certain non- recoverable engineering fees. SmarTire has paid SensoNor $25,000 in cash and are in negotiations to resolve all outstanding issues, including a repayment schedule over the period ending July 15, 2003.
Incorporated in 1987, SmarTire is a public company with offices in North America and Europe. Additional information can be found at www.smartire.com.
"Al Kozak"
Al Kozak Chief Operating Officer
