In the letter Crown has stated their intent to make a payment to WebTech Wireless sufficient to pay off the interest owing under the Loan Agreement and to partially pay down the accounts receivable owed to WebTech Wireless by Crown by May 26, 2007.
Crown has also informed WebTech Wireless that it is in discussions with several financial institutions in Brazil, both local and international, aimed at securing investment funds to provide the working capital Crown requires to fund its "24 Horas" operation in Brazil. In addition, Crown has provided documentation confirming that they are actively engaged with a major vehicle OEM in Brazil. To that effect, Anwar Sukkarie, CEO and co-founder, WebTech Wireless, has made arrangements to visit Brazil this week to meet and continue the direct contact between WebTech Wireless and the vehicle OEM.
"Crown Telecom has expanded dramatically in the past few months to accommodate our rapidly growing customer base," commented Jose Antonio S. Pereira Jr., President and CEO, Crown Telecom. "We have had several financing options and offers, including a financial offer presented by WebTech Wireless on May 13th, 2007. Crown is diligently working with WebTech Wireless to resolve the default issues and I am certain that Crown will meet all its financial challenges."
"The options described by Crown would certainly improve its working capital challenges and would allow us to continue recognizing the revenue from Crown and hopefully allow us to start shipping to them again before their on-hand inventory runs out," said Anwar Sukkarie. "However, it is important that Crown fulfill the commitments they have made in exchange for our agreement to extend the cure period. In addition, my direct meetings with the vehicle OEM in Brazil are aimed at reaching an agreement to allow the ’24 Horas’ program to continue while minimizing the risk to WebTech Wireless from our Brazilian operations." [May 15, 2007]
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