OTCPK:CAWW - Post by User
Comment by
JohnEnglishon Dec 17, 2018 2:11pm
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Post# 29125030
RE:Breaking 30 cents
RE:Breaking 30 centsThe problem is management and their account receivables.
When you work on a large project, unexepcted things come up that bring additional costs. Normally, you go back to the client and let them know and negotiate the additional cost. However, DIG didn't do that. They just went ahead and completed the project and then sent the client the bill. Naturally the clients pushed back and are refusing to pay the additional cost since it wasn't mentioned in the original contract.
Reading between the lines it looks like Bell and Rogers are both reducing their business to BIG and sending it elsewhere becuase they don't like how DIG has handled this whole situation and how DIG is constantly after them for these additional costs.
So, now not only do they have a chunk of AR that they may not be able to recover, they are also losing business from existing clients over it.