Conversion Solutions Holdings (fka CSHD)

[skeptic0]

Note: $87,429,990 firm-fixed-price contract

contracthttp://bloggeroffline.blogspot.com/2006/07/conversion-solutions-inc-negotiates.html

Military News -- US Army, US Navy, US Air Force, Marine Corps, Coast Guard news: Conversion Solutions, Inc. Negotiates Military Logistics Contract
Friday, July 28, 2006

Conversion Solutions, Inc. , Kennesaw, Ga, negotiates a $87,429,990 firm-fixed-price contract. This action provides for joint air-to-surface logistics temperately control missle actuators, initial operational capability and full operational capability assets. This effort supports foreign military sales to the Commonwealth of Australia (89 percent). At this time, $87,429,990 has been obligated. Solicitations began March 2005 and negotiations wil complete Aug 2006. This work will be complete December 2007. Headquarters 328th Armament Systems Group, Eglin Air Force Base, Fla., is the contracting activity (FA8682-06-D-0072-0023 (long lead assets and FA8682-06-D-0072-0023 (balance of assets).


Conversion Solutions, Inc. Contacts:

Conversion Solutions, Inc.
125 TownPark Drive
Suite 300
Kennesaw, GA 30144
Main: 770-420-8270
http://www.cvsu.us/

Rufus Paul Harris
Chief Executive Officer
Cell Phone: [phone]

Ben Stanley
Chief Operating Officer
Cell Phone: [phone]

Darryl Horton
Chief Financial Officer

John Walsh
Executive Vice President Administrations
Cell Phone: [phone]



Description of Business

The Company is a diversified holdings company which was formed to originate, fund and source funding for asset-based transactions in the private market. CVSU’s main products will be to acquire, provide funding and insurance to its target companies in the currently underserved $ 15,000,000 to $ 100,000,000 asset finance market. CVSU provides economical and efficient use of capital while providing a valuable opportunity of loans to and or investment in small and medium sized businesses by providing asset based funding against marketable “income producing and insurable” assets. Our funding will enable our businesses to compete more effectively, improve operations and increase property value.The Company

CVSU will issue a series of securities to a limited accredited investor market based on different asset groups to create transactional and operational capital. Thereafter CVSU shall arrange to package each asset or asset group into asset-based securities (ABS) and at a later time thereafter spin-off a special purpose vehicle with an income stream to the accredited investor market. These transactions will accomplish the dual purpose of funding transactions and increasing operational capital and shareholder value. If necessary we will group assets and insure them as to title, liens and against loan loss, when appropriate, prior to issuing any asset backed security. Furthermore, we are setting up a subsidiary management company to manage all ABS securities outstanding and eventually assist the management of the spin-off special purpose vehicles.

The corporation intends to specialize in three (3) main lines of business (1) loan and or invest money to commercial business that possess marketable and insurable assets whereby the loans are secured by the asset or asset group (2) place insurance for asset title, lien valuation and against loan loss for each asset tendered for securitization, when required and (3) manage premium revenue, reserves and its ABS portfolio. CVSU intends to become the preferred stop for the acquisition of small to medium sized businesses to raise capital against marketable, income-producing and insurable assets to enable asset owners to add value to their properties and increase income derived from their properties. The assets CVSU intends to fund against will be within the $ 15,000,000 to $ 100,000,000 range and will either be income producing or present a very high probability to produce income within a maximum 16-month time horizon. Should the asset possess characteristics whereby CVSU can reasonably foresee income within that time horizon, CVSU will substitute that income stream for sales revenue that the company is presently generating while the secured asset readies itself to become income producing. CVSU will lend against these assets in a structured and agreed way but in no instance more than 20% of its company balance sheet. Any securities issued by CVSU to fund asset groups shall be made to accredited investors for purposes of purchase, pledge or hypothecation. CVSU will insure against “bad” title, the loan to value or lien ratio as well as the repayment of any asset-based loan by setting up a “captive” insurance company that will purchase reinsurance and manage the premium account as an offset to any loss. The captive insurance company will be set up after our initial capital has settled.

Market

The Company has targeted businesses that have sales of $2,000,000 to $50,000,000 or more per year. CVSU will use real and/or marketable assets, secure funding and insure assets as required while lending the capital each business requires increasing income and the value of its business. By operating in this market CVSU intends to increase its asset value and enhance shareholder’s value. However, CVSU is aware that the idea of asset based financing is new to this market. Furthermore, CVSU possesses no manufacturing or distribution base that would require operations capital placing it in an enviable position. Excess capital over and above transaction capital required for each deal would become operations or future deal capital for CVSU.

Plan of Operations

Setup of Company

The Company's plan of operations for the remainder of 2005 is to raise capital against its asset base and develop its’ role in the niche market for securities offerings using asset based funding techniques. This entails the development of the CVSU business model. CVSU intends to list its stock on the NASD. To this end, CVSU is in discussion with various market makers to engage in a firm underwriting using a syndicated market distribution approach. Moreover, CVSU intends to set up a captive insurance operation through its’ insurance liaison with Lloyds affiliations, who are members of the CVSU team. CVSU intends to write policies to cover its loans, when applicable and secure the proper re-insurance for underwritten loans through the London reinsurance markets and other applicable markets. CVSU has made arrangements to secure primary insurance against loan loss through the London insurance market and others and has several reinsures available for the underwriting of such insurance through its captive. CVSU is setting up to operate an ABS management company in manage its portfolio. CVSU intends to operate its business and apply for a company rating from Fitch rating service. As CVSU’s public target will have been a corporate entity for more than five (5) years with more than 3 years of operating history, it will qualify for submission to Fitch Rating Service for a company rating. Such a rating will be beneficial in Europe and the US.

Operations

CVSU will operate through its operations officers to bring in new business and execute existing business. Once the business is introduced CVSU will discuss the merits of funding each asset in committee. The committee will vote on whether or not funding is feasible for the asset. When a positive vote is recorded a decision will be made as to the best structure to secure funding. A special purpose vehicle may be set up though CVSU’s legal department or its Asset management committee for this purpose. The captive insurance company will underwrite the risk of title and lien due diligence and loan default loss and reinsurance will be placed for the insurance polices, if such insurance is required. Convertible debentures with an indenture or other debt securities may be floated for selected issues for the term of the asset loan pool.

CVSU’s operations officers will manage operations capital and the company portfolio of insurance premiums and the associated risks. CVSU will repeat the described process, as needed but will attempt to limit these issues to between four (4) to six (6) issues per year. We will re-evaluate strategy and policy as the company and its’ operations grow. Depending on business flow we will spin-off our ABS portfolio in or about the second year after first funding of the subsidiary company.

A CVSU designated asset group financing will necessarily involve various transaction agreements that may cover several asset owners and types. A CVSU-designated financing may represent only a limited amount of the asset group value or an entire asset group value depending on cumulative asset value and securities structure.
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