Fat lady is singing , Jason Allen in drag actually !!
Virtutone CEO, CFO, directors resign
2015-02-24 16:10 MT - News Release
An anonymous director reports
VIRTUTONE ANNOUNCES CORPORATE UPDATE
Virtutone Networks Inc. is providing an update on the current financial condition and status of the business of the company. As noted in Virtutone's January 16, 2015 press release, one of Virtutone's biggest clients, based in London, United Kingdom, has been unable to make payments of a total amount of US$13.8 million. Although Virtutone's management has taken all the necessary steps in order to collect the payment, as of yet it has not received payment.
At the time of this news release the Company has approximately $26 million USD in accounts receivables, including the amounts owing from the United Kingdom entity, and approximately $17 million USD in accounts payable. A total of approximately $14.5 million USD of the accounts receivables, including approximately $12 million USD of the amounts owing from the United Kingdom entity, is insured by Export Development Canada ("EDC"). The Company has filed an insurance claim with the EDC with respect to amounts owing by the United Kingdom entity. Based on EDC policy, it is estimated that a minimum of 4 to 6 months may pass from the average time of the due receivables for EDC to either collect the receivables or payout the insurance.
On January 23, 2015, the Company filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (Canada) (the "BIA") and BDO Canada Limited ("BDO") consented to act as Trustee under the proposal (the "Proposal") to the Company's creditors. The filing of the Notice of Intention provided protection to the Company from its creditors in order to allow the Company time to make a formal Proposal to its creditors. During the process, BDO monitored the operations of the Company and was available to assist management in formulating its Proposal within the timeframes set out under the BIA and as determined by the courts. It was determined by management and BDO that the company did not have the required funds to collect the receivables as the collectability of the receivables are significantly more uncertain than originally anticipated, and management therefore allowed the date required for submitting the proposal to lapse causing the bankruptcy of the company.
Mr. Jason Allen President and CEO and Mr. Bill Woods CFO have relinquished control of the company to BDO as Bankruptcy Trustee and effective immediately are no longer officers of the company.
Mr. Harold Baxandall, Mr. Ron Long, and Mr. Jason Allen have resigned their positions as directors of the company effective immediately.
We seek Safe Harbor.