CHICAGO, IL--(Marketwired - January 30, 2015) - Veltex Corporation -- (OTC PINK: VLXC) -- Veltex Corporation ("the Company") announced today that the corporation has materially revised upward the accrued interest on the federal judgments reached in California. The accrued interest will now be reflected as $25,942,898 up from $2,281,950 or an increase of $23,660,948. The changes will be reflected in the September 30, 2014 accounting.
The Company's legal settlement receivables relate to various lawsuits. For the purpose of this revision, the Company, on March 26, 2012, in the United States District Court for the Central District of California, was awarded and a final judgment entered in the amount of $100,078,621 in favor of Veltex in Case No. CV 10 1746 ABC (PJWs). This federal litigation was brought against the former management of the Company and other individual and corporate defendants. It arose from a scheme to fraudulently convey the shares of the Company to another entity for little or no consideration to Veltex. The proceeds from the sale of the shares were converted by the defendants to their own personal use. The judgment was classified as fraudulent conveyance and transfer of assets, or corporate theft, by the United States District Court.
The above referenced litigation, detailed in the final judgment order against the defendants, specifically outlined California State Sections 4(a) and 5(b) of the Uniform Fraudulent Transfer Act, California Civil Code § 3439.04(a) and (b). That order delineated state law violations that carry a California interest rate of 10% annually under the California Code of Civil Procedure Section 685.010 (a). That interest does not compound and is calculated and reflected as straight interest annually. The Company was awarded interest at Federal rates, in arrears, by the district court. Going forward from March 27, 2012 the award carries California state rates.
Veltex will update shareholders with developments as progress warrants on legal, tax and accounting matters. Veltex Corporation seeks to update shareholders on the immediate future of the company as developments warrant. We look forward to creating partnerships and alliances that will highlight our comparative and competitive advantages in the holding industry and in general.
Veltex Corporation, incorporated in Utah September 17, 1987, is a public holding corporation, which maintains its corporate headquarters in Chicago, Illinois. The company's common shares trade OTC Markets under the symbol VLXC.
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Safe Harbor Statement Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "seeks," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company, Veltex, as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.