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Story last updated at 7:03 a.m. Saturday, January 18, 2003

Corporate Vision sells subsidiary to Georgia firm

Holding company's restructuring leaves small presence in Charleston area

BY JONATHAN MAZE
Of The Post and Courier Staff
Corporate Vision Inc., saddled by debt and losing money, has sold its waste-processing subsidiary, Southeastern Research and Recovery Inc., for $1.58 million to a Georgia company.

The sale to Alpharetta, Ga.-based Gulftex Energy Corp. leaves Corporate Vision with only a small administrative presence in its Charleston headquarters, with the bulk of its business done out of Ohio, where the holding company acquired Stony's Trucking Co. last year.

Corporate Vision will get $1.25 million in cash for the sale, and Gulftex will assume some debt and liabilities.

The sale won't mean an immediate capital infusion because the money will be paid to it over five years, according to the company. Still, along with an earlier $2.5 million securities placement, the sale will help provide Corporate Vision with the funds it needs to grow.

A company official said an announcement along those lines is expected in the coming weeks.

Richard D. Tuorto, chairman of the company, and Gregory J. Gibson, chief executive, were unavailable for comment Friday.

"The sale of (Southeastern Research) will represent the first step in the company's upcoming restructuring, as it seeks to define and create an identity for itself in the public sector," Tuorto said in a press release.

Prior to the sale, the company had nearly 70 employees. About 11 or 12 of those were at Southeastern Research, according to the company official, who said that no workers have been let go.

Corporate Vision acquired Ehrhardt-based Southeastern Research in 2001 for more than $1.66 million in the company's common stock, according to its most recent quarterly report.

In the company's most recent documents filed with the Securities and Exchange Commission, Corporate Vision said it had $9.4 million in revenues but lost $404,171 in the third quarter of 2002. For the first nine months of the year, the corporation lost more than $8 million.

The company said that Southeastern's revenues were hurt when a big customer decided to process waste internally.

Also, Corporate Vision said in its SEC report that it had significant unpaid accounts payable and is in default on some long-term debt. The company has a plan to raise more funds and acquire companies with cash-generating operations.

"The ability of the company to continue as a going concern is dependent on the success of this plan," Corporate Vision said in the SEC documents.



Jonathan Maze covers the health care and technology industries. Reach him at 937-5719 or [e-mail].










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