 |
February 14, 2008 |
|
|
|
 |
VTL GROUP: Sees NZ$135-Mil. Loss in 14 Mos. Ended Aug. 31 In a filing with the New Zealand Stock Exchange, VTL Group discloses it is expecting a net loss of about NZ$135 million in the 14 months ended Aug. 31, 2007. According to VTL Group Chairman Gary Stevens, the projected loss includes a major write-down of assets and provisions arising from the company's current situation. "This clearing up of the balance sheet gives us a stable platform from which we can continue to work through an orderly sale process of our assets, and hopefully create a potential base for any future activity," Mr. Stevens said. "These write-offs have followed a thorough review of the company's balance sheet and we are now focused on working with the receiver of Nathans Finance to protect and maximise the value of available assets and to hopefully secure VTL's ongoing future. We've taken a hard but appropriate approach in order to get to a solid base." PricewaterhouseCoopers partner, Colin McCloy, receiver of VTL subsidiary Nathans Finance, said that the result was very disappointing and concerns him as receiver. The extent of the loss will be investigated by the receivers. However, he believed that by continuing to support the on-going operation of VTL's assets he was acting in the best interests of the Nathans Finance debenture holders. "While I am concerned about how this result may affect the interests of Nathans Finance debenture holders, I believe an orderly divestment of VTL's operating assets is still the best way forward at this stage." Mr. McCloy said he would continue to re-evaluate the appropriateness of this strategy in consultation with the board of VTL Mr. Stevens said that, with the support of the receiver, each of VTL's individual business units had sufficient access to working capital to continue operating. This was important to ensure the sales programme currently being run by the VTL board and the receiver of VTL subsidiary Nathans Finance realised the best possible return. "We are working closely with all parties to ensure assets viewed as non-core holdings are realised in an orderly manner and keeping these businesses operating successfully remains at the centre of VTL's business focus. This is in the best interests of all stakeholders." Mr. Stevens said expressions of interest were currently being evaluated for the 24seven operations in Australasia, California and Texas. Talks were taking place with overseas parties regarding the ongoing funding needs of the company's international Shop24 business, which had significant potential value. "VTL was always intended to be a franchisor, not a vending operations company. In that respect, selling our operating assets, and consolidating any future business activities around our core intellectual property is entirely consistent with our business model." Mr. Stevens said that while the present situation was extremely distressing, the board, management and staff of VTL were focused on constructively working to ensure the company had a future, that stakeholder interests were protected as much as possible and that the best possible prices were obtained for assets being sold. Mr. Stevens went on to say that stakeholders could be assured that governance will be a requirement of the restructuring of VTL to ensure that the board has the right blend of skills and experience to meet the future needs of the business. VTL Group Limited (NZX: VTL) is a global franchisor, with its franchised brands represented internationally including in Australasia, North America, UK and Europe. VTL Group's franchise model is supported by a complete management system including its proprietary technology and financing. The company's primary growth strategy for 24seven and Shop24(TM) is based around purchasing quality electronic vending equipment for 24seven or the manufacturing of its Shop24 units, installing proprietary control technology and building a network of franchised owner/operators. VTL Group Limited has declared itself insolvent. Its wholly owned subsidiary, Nathans Finance NZ Ltd went into receivership in August 2007. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
