EVS - Telecoms growth stock for 2005

my analysis of the cva because ivorb wont back up his stories and opinions with anything concrete its better to read the facts taken directly from the website

pay particular attention to the bits in bold and my notes in brackets as they are what clearly applies to evs and are the reasons it will return with aquisitions soon and a 10 bagger for me and anyone else who averaged down before the suspension i hope that those who bought at higher prices will also at least get their money back if they hold out for the right price as the company grows again better than selling at a loss like so many have already done in haste and panic


Company Voluntary Arrangement (CVA).
Debt Guide: Debt solution for limited companies.
The CVA is the procedure in company law which corresponds closely to the individual voluntary arrangement in personal insolvency law. In simple terms a CVA is a deal between a company and its creditors. A feature of the voluntary arrangement is that the company requests extra time to pay its debts and often also asks its creditors to write off a proportion of its debts. The deal may be accepted because creditors take the view that they are likely to receive more in a voluntary arrangement than if the company were forced into liquidation. Furthermore, trade creditors may expect that they will derive profit from future dealings with the company, dealings which would not be possible if the company were to cease trading. Although the voluntary arrangement is administered by an insolvency practitioner known as a supervisor, it cannot be over-emphasised that the deal is between the company and its creditors. (cf3 - ie institutions) Furthermore, and most importantly, the company remains in the day to day management of its directors.

A CVA cannot be forced upon the company's creditors; it has to be agreed by 75% by value of the creditors (cf3 - ie institutions) who vote at a meeting specially convened to consider the voluntary arrangement proposal. Creditors are likely to vote in favor of a CVA so long as they can see a reasonable return on the amount due from the company. (cf3 - ie after aquisitions are completed) This in turn requires:

Satisfactory management
Adequate funding so that the company can pay its ongoing expenses as they fall due. (cf3 - ie via placings to institutions)
The benefits of a CVA to the directors of a company are that they....

Avoid bankruptcy or company liquidation. (cf3 - so ivorb is telling porkys !)
Regain control and continue trading. (cf3 - back to trading)
Wipe up to 75% off your unsecured debt. (cf3 - banks write off the debt against tax)
GUARANTEED DEBT FREE in 60 months.
One easily affordable monthly payment.
All interest FROZEN and charges STOPPED. (cf3 - banks freeze the debt no need to repay for a fair amount of time)


Creditors will want to establish in their mind how the company is going to make profits in the future (cf3 - lossmaking seven is gone and moneymaking aquisitions are the plan) when it has run into financial difficulties in the past. A CVA is therefore particularly appropriate when the company's difficulties arise out of a number of specific but isolated events(cf3 - could not compete with skype) which are not expected to arise in the future (cf3 - a different direction to be taken by the company). Such events may be a particularly unprofitable contract(cf3 - seven poor cash flow and lossmaking), or a significant bad debt, or an under-insured interruption such as fire or flood. If creditors are to support a company voluntary arrangement then they will wish to be satisfied that there is profitable underlying and continuing business (cf3 - back to trading after aquisitions) and that management is capable of carrying forward the business (cf3 - the plan that the institutions already agreed to financing once seven had been disposed of)