TELEDATA TECHNOLOGY SOLUTIONS LTD. - Updates

Teledata Technology Solutions Ltd has informed BSE that the Company's US business has been going through various stages of reorganization of business, weak recovery and stress on working capital. In 2010 the Company had issued GDRs to raise funds to shore up its working capital, deleverage the business and allow for strategic acquisitions to help grow the business along strategic lines of business operations. In 2011 initial draw of funds from the GDR were assigned to complete the acquisition process of Abaris, which the Company had entered, into in 2008.<br/><br/>The Companys Lines of Credit with JP Morgan Chase were beyond the Borrowing Base of the covenants and the Company has been under constant pressure by the bank to bring the lines down. By the middle of 2011, JP Morgan Chase sold off the Companys loans to Sandton Capital. Sandton Capital, whose business model is based on buying distressed assets and converting them profitably, started, to apply extreme pressure on the Company to pay down its loans.<br/><br/>Sandton continued to apply pressure on TTS-USA to close its loan. In December of 2012, Sandton sent its notice of intent to foreclosed on its loans with TTS-USA. Sandton subsequently foreclosed its loan and took possession of the TTA-USAs assets. These assets were sold to Quadrant Four through UCC Article 9. The US organization is on the final stages of resolving issues relating to the sale of the assets.<br/><br/>TTSL is presently exploring opportunities to reenter the US market through strategic offerings and to rebuild that business.