Satisfaction and Assignment Agreement and New MesoCoat Ownership Structure
Exhibit 99.1
January 20, 2016
Abakan, Inc. (“ABKI”: OTC US) – New York, New York
Abakan, Inc. and MesoCoat, Inc. Receivership Is Resolved By Court-Approved
Transaction: Receiver Worked With Parties to Resolve Disputes Resulting In
Satisfaction and Assignment Agreement and New MesoCoat Ownership Structure
On January 4, 2016, Abakan and MesoCoat entered into a Satisfaction and Assignment Agreement (the
“Satisfaction Agreement”) with secured creditors Xxxxxx Town, SA (“Xxxxxx Town”) and Sonoro Invest
S.A. (“Sonoro”), as well as unsecured creditors Xxxxxx X. Xxxxxxxx (“Xxxxxxxx”), and Xxxxx van der
Gulik, Xxxxxx Xxxxx, Xxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxx & Associates and Xxxxxxxx Xxxxxxxxxx
(together the “Abakan Petitioning Creditors” and collectively with Xxxxxx Town, Sonoro and Eberhard,
the “Creditors”), reflecting the terms of the Court Approved Transaction. Pursuant to the Satisfaction
Agreement, Abakan transferred 77.5% of the outstanding stock and ownership in MesoCoat to the
Creditors in satisfaction of approximately $6.24 million of claims by the Creditor’s against Abakan and
MesoCoat. Under the terms of the Satisfaction Agreement, Xxxxxx Town received 38.75% of
MesoCoat’s outstanding stock, Sonoro received 28.17% of MesoCoat’s outstanding stock, Eberhard
received 7.44% of MesoCoat’s outstanding stock and the Abakan Petitioning Creditors received an
aggregate of 3.14% of MesoCoat’s outstanding stock. Abakan retained 22.5% of MesoCoat’s
outstanding stock. In addition, MesoCoat agreed to pay in full the claims of certain creditors of
MesoCoat in the aggregate amount of approximately $41,900 within 14 days of execution of the
Satisfaction Agreement. Further, pursuant to the Satisfaction Agreement, the Receiver will continue to
serve as receiver over MesoCoat and Abakan for 91 days following the date of the Settlement
Agreement. MesoCoat is continuing to pay other creditors in the ordinary course of business.
The agreement was entered into after proposed settlement transactions were considered at a hearing
on December 16, 2015 at the United States District Court for the Southern District of New York (the
“New York Court”).
For any questions of the Abakan and MesoCoat Receiver, please contact Xxxxx X. Xxxxxx, Esq., general
counsel to the Receiver, at 000-000-0000, or Xxxxxx Xxxxxxx, Esq., bankruptcy counsel to the
Receiver at 954-712-7400.
For any questions of counsel for the petitioning unsecured creditors, please contact Xxxxx Xxxxx, Esq. at
305-341-0671.
For any questions of counsel for the Abakan board of directors, please contact Xxxxxxxx Xxxxxxxx, Esq.
at 000-000-0000.
