Interesting developments for this industry lately. One company, Transol Inc, has been put into liquidation with another, Nestor Traffic Systems looking to be in a fair bit of trouble. Four independent Nestor directors have just resigned under a cloud, their previous financier, Laurus, has walked, and their last quarter saw their biggest loss for years. More large losses are predicted and they appear very close to running out of cash.
They appear to be in the running for the Los Angeles contract, that will require about $5 million cash to be spent by them up front, cash they just do not have so it is very hard to see the L A council taking what would equate to a huge gamble. It is a real catch 22, they have to get the L A contract to be able to raise more finance and any financier would most surely want to see a signed L A contract before even thinking of lending.
Meanwhile Redflex just seems to win contracts and get even stronger. |
