Replies to post #9605 on Veltex Corporation (VLXC)

[unifin]

G&V - if not consolidated they should at least figure on the financial statements as investments at fair value (read the FASB statement) - If their was a collateral contingency - this should have been disclosed and a liability recognised - but that collateral contingency should have finished as they treated the trucking business as a discontinued operation.
Very confusing - why don't they clear this out?
If the ownership of the Textile Mill shares shows to be a personal ownership by Matin (as the present financial statements might suggest), the real 2004 consolidated financial statements could be a disaster.

Unifin

[pual]

"Since the assets of Velvet Textile Mills were used as collateral to buy the semi trucks in 2003, I can only speculate that this could be a reason why the auditor declared a lack of absolute control."

As I often said, a source of mine had alluded to this and mentionned that effrectively, Matin had lost control of this asset (with right to buy it back). However I wasn't able to confirm it up to now.

I may have missed something but where did you get this information.