Cannondale Repays Debts

Brent Avis
by Brent Avis
Cannondale Corporation has paid down approximately $12,000,000 in long-term debt and resumed production of its MX400 motorcycle.

The pay-down also terminates the warrant granted in June 2000 to Ableco Finance LLC, one of the Company's lenders. The warrant would have allowed Ableco to purchase 393,916 shares of the Company's common stock beginning June 30, 2001 at $0.01 per share, thus allowing them to possibly gain control of the company for very little money...

The pay-down follows Cannondale Founder and President Joe Montgomery's full repayment of notes totaling $12,000,000 and all related accrued interest to the Company.

``Our core bicycle business continues to be strong, and now we're excited to have the motorsports division back on-line,'' said Montgomery. ``With the MX400 on its way to dealers and customers, and with the FX400 waiting in the wings, we're looking forward to an exciting 2001.''

Documentation of the testing of FX400 prototypes can be seen at Cannondale's web site.

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