May 31, 2001
MSU CORP (MUCP.OB)
form 8-K
Item 5. Other Events.
In accordance with Rule 135c under the Securities Act of 1933, the Company is filing herewith its press release issued May 25, 2001 as Exhibit 99.1 hereto.
In connection with the preparation and filing of the administrator's report, a weekly cash flow forecast was prepared solely by the administrator in consultation with the management of Web 2 U Limited. Following a cash injection of $50,000 by MSU Corporation and the cancellation of a letter of credit, the cash balance of Web 2 U Limited at May 11, 2001 was approximately (pound)94,000. The administrator's cash flow forecast outlines the following: (i) a sales forecast for a three month period (May 2001 through July 2001) projecting receipts of approximately (pound)170,000 received from product sales into five countries, (ii) expenses to continue the Web 2 U Limited's operation during this three month period are approximately (pound)150,000 and (iii) a resulting projected net balance of approximately (pound)114,000 at the end of July 2001. This balance is before any settlements have been made with Web 2 U Limited creditors.
As outlined in the attached press release, management believes that the forecasts prepared by the administrator, and in particular, the sales forecast, may not be achievable. Such forward-looking forecasts involve significant risks and uncertainties, such as the potential obsolescence of Web 2 U Limited's current inventory, which could affect actual results to differ materially from expectations expressed in the administrator's report. |
