Fortex-MID moves to dispel channel fears

Executives at Fortex-MID have insisted that short-term cash flow issues will be resolved within a week and urged creditors to arrange meetings with the company to discuss the present situation.

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By  Stuart Wilson Published  April 17, 2006

Executives at Fortex-MID have insisted that short-term cash flow issues will be resolved within a week and urged creditors to arrange meetings with the company to discuss the present situation. Asef Asefi, manager of Fortex’s facility in Iran has arrived in Dubai to meet with creditors. Melwin Cardoza, finance controller at Fortex, said: “There are some cheques that have bounced — I agree with that. This is for the Fortex account though. There are no cheques that have bounced for the Micro International Distribution (MID) account.” “It is a cash flow problem,” he continued. “But cash flow is still happening in the business and the ups and downs are there. This is not a long-term problem, it is a short-term problem and there is nothing to worry about.” “Within a week’s time everything will be OK and there will be no more issues and no more cheques will bounce. Everything is under control and there is nothing to worry about. We have gained a good name in the market and I want that to continue. I want to tell people there is nothing wrong and we are open and ready to fix meetings with people,” Cardoza added. Cardoza claims that suppliers and bankers have been ‘cooperative’ and insists all payment issues will be resolved and that there is no credit risk exposure for distributors. “There is no exposure – it is under control,” he said. “We are going to reassure them and give them the confidence that we are going to pay shortly and that there is nothing to worry about.” Fortex-MID management insists that this is not a channel ‘hit and run’ situation, claiming that competitors linked the fact that company owner Mehdi Asghari is currently out of the country with the cashflow issues and reached the wrong conclusion. Asefi commented: “Mehdi Asghari is in Europe. Mehdi is a prominent person in the computer market and he has a lot of competitors. They made rumours in the market saying that he has taken a lot of money and run away.” “He [Asghari] called me and told me to come here and speak to people and tell them to wait for him until he comes back. I am here to talk to people and cool down the situation until he calls them and comes back,” he added. Asghari will return to the UAE within 15 days according to Cardoza.

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