Replies to post #52 on Veltex Corporation (VLXC)

[dagnyish]

There are no former Board members. The only thing I can think of is that there might be someone who has been ousted from control. If you read the Company History section of the Business Plan carefully, you see:

"In October 1996, Velvet Textile Mills had an outstanding debt to Matin representing the cost of the looms purchased in the United States. At that time, Matin also held 16-million equity shares in Velvet Textile Mills, representing 100% of the outstanding equity of the company.

In November 1996, Matin converted his debt holdings to equity shares in Velvet Textile Mills.

In December 1996, Matin exchanged all his equity shares in Velvet Textile Mills for 1000 shares of Veltex Corporation common stock, which at that time represented all of the outstanding shares of Veltex.

In January 1997, the Board of Directors of Veltex authorized and its shareholders approved a 400 to 1 share split and converted its no par stock to $0.001 par value common stock, which brought Matin’s holdings in Veltex to 4-million shares of common stock. After giving 100,000 shares to each of his two brothers, Matin was left with 3.8-million shares."

Which tells me that Matin spent (I have heard $7-million) to buy the looms and if the company could not pay him back, he may have 'foreclosed' and put the directors or owners out of the company. This seems quite possible, and it also seems like something that would generate a lot of hatred among some people.

However, this TextileGuru is just a bum from what I can gather. Matin told me a story of Hassan trying to sell him looms (Hassan sometimes works in the textile industry). He called and called, begged and threatened so finally Matin agreed to buy the looms and paid Hassan $100,000+. Hassan, as agent for the seller, was supposed to turn over the money to the seller of the looms. He spent it instead. So, the looms sat on the dock unpaid and Matin had to go to Bangladesh to straighten out the mess. When he saw the looms he discovered that Hassan had told him he would be buying new looms, and the looms delivered were old ones. Matin paid for them, as I understand. It might be worthwhile to look back in the archives of RB because I seem to recall some post about 'looms sitting on the dock unpaid'.