Business
VVC Exploration - delay in filing audited financial statements
VVC Exploration - delay in filing audited financial statements.
About this update from Vvc Exploration Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, May 31 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V)\n(V7S: FSE / BBSE) ("VVC" or the "Company") reports that it has been delayed in\nfiling its annual financial statements and its annual management discussion &\nanalysis related thereto for the year ended January 31, 2007 by the required\nfiling date under applicable Canadian securities laws, namely May 31, 2007.\nThe delay is attributable to the difficulty of the Company's auditors carrying\nout an audit of the Company's Joint Venture ("CJV") in Tong Guan, China, after\nthe decision was made to withdraw from the CJV. This decision was taken due to\ndeclining production and revenues, increasing cost, lack of cooperation with\nour joint venture partners, fierce local competition for new production and\nexploration properties, unjustifiable high audit fees, accounting and\nsupervision cost in light of low gross revenues. The Company decided to\nproceed with the dissolution, after it had completely evaluated its\nobligations to the CJV and concluded that it was no longer feasible for\nfinancial and business reasons to continue its relationship with the CJV. Our\nChinese partners were not pleased with our decision and expected the Company\nto continue to fund further cash advances. Relationship with our Chinese\npartners thus deteriorated and it became difficult for Company personnel to\nvisit the Chinese location. After months of fierce negotiations by our Beijing\nlawyer, a Plan of Dissolution was mutually agreed upon and submitted to the\nlocal authorities for approval and implementation. The Company decided to\ncompletely write-off the CJV, because of the difficulty at this time of\nestablishing the amount that could be recovered. In light of the difficulty of\naccess, the pending dissolution and the write-down, management believed that\nan audit of the CJV should not be required. In fact, the Chinese party did not\nconsent to the audit until just recently. However, there is no guarantee that\nthey will co-operate with the auditors and/or make the relevant documents and\ninformation available to the auditors.\n\n\nThe Company is working with its auditors and its Chinese partners to\ncomplete the audit of the CJV in order to incorporate the relevant information\nin the Company's financial statements as soon as possible...