Veltex Corporation Revises Judgment Interest Rate Calculation

CHICAGO, IL--(Marketwired - January 29, 2015) - Veltex Corporation -- (OTC PINK: VLXC) OTC Markets symbol (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 at 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.