Veltex Corporation (VLXC)

[GratziPrego]

Yes, we need to know "what's left of the company, and what, if any, are the business plans going forward."

As far as the shares that Matin personally "pledged" millions of shares of his own as collateral for Veltex to obtain the loan to buyback company shares, it seems that this is a situation actually between Matin and the Lenders'(Dafcan Finance and One Equity Corporation of Westerville, Ohio a/k/a "The Defendants"). The main question is "will the Lenders ("The Defendants") still have to purchase shares and deliver them to Matin, or just reimburse him in the form of Cash?"

Please note: Veltex is not a party in the litigation.

It doesn't seem that the case will have much of an impact on Veltex shareholders.

Here is a Press Release from the past as a reference:

LOS ANGELES, July 25 /PRNewswire-FirstCall/ -- On July 20, 2007, the United States District Court for the Southern District of Ohio ordered that Dafcan Finance and One Equity Corporation of Westerville, Ohio deposit common shares of Veltex Corporation (Pink Sheets: VLXC) with the Court. The Court's order arises out of a suit filed by Javeed Matin, principal shareholder, against those entities with respect to a transaction pursuant to which Mr. Matin pledged 2,000,000 shares of his stock to secure a loan for financing a stock buy back program of Veltex Corporation. Veltex announced late last year a share repurchase program. Mr. Matin alleges that the shares were improperly sold during the month of March of this year in violation of the loan agreement and has sought to rescind the transaction. The defendants contend that the shares were transacted pursuant to the terms and conditions of the loan agreement, and that Mr. Matin is in breach of his obligations under that agreement to repay his loan.
In a prior proceeding on May 29, 2007, by agreement, the defendants were ordered by the Court to repurchase 2,000,000 shares, in the open market, by June 29, 2007. However, the defendants revealed that they were able to purchase only 116,000 shares because of market conditions. Mr. Matin has requested that Dafcan and One Equity, and their principals, be held in contempt. The Defendants contend, there was no contempt of the Agreed Order. The hearing is July 31, 2007 in Columbus, Ohio.
The pleadings in the case can be seen on http://www.uscourts.gov/ or by access through the PACER Service Center at Case No. Case No. C2-07-A52 United States District Court for the Southern District of Ohio: Javeed Matin v. Dafcan Finance et al. Veltex is not a party in the litigation.