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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Double Dipper who wrote (13039)	4/20/1998 3:29:00 PM
From: Moonglow	Read Replies (1) \| Respond to of 27968

Kevin, You surely don't think that IRS is going to let a deal go through of that magnitude without checking out BOTH companies, do you? Besides, IRS has access to many of the financial documents that all of us would LOVE to get hold of....like for example, the Fm 941's...filed quarterly, showing the size of the payroll....how FAMH makes it's payroll taxes and if they make them on a timely basis? FAMH's got to be in good shape with the IRS on this point or they wouldn't have stood a chance getting the merger done. And for a staffing company to be in good graces on payroll taxes is a very important point....there's got to be enough cash flow to cover all that. Remember, when FAMH took on Myriad they were not just taking on the PAST debts...but also taking on any future P/R liabilities. A line of credit wouldn't be enough to cover all that. Only when IRS was assured that FAMH would be able to meet all FUTURE obligations as well as the past would they have allowed the merger to go through. Juanita

To: Double Dipper who wrote (13039)	4/20/1998 3:29:00 PM
From: John Fairbanks	Read Replies (1) \| Respond to of 27968

Kevin, my understanding was that the collateralization was some stock that was set aside as collateral. In that instance they would definitely want to check the financial strength of FAMH since the stock would depend on it. I can tell you that in cases like this a bank will carefully review the financial state of the person coming in to bail out the people in arears because the last thing they want to do is end up in the same place once again a year later. I believe Ira also had to prove to the IRS that he could make a go of Myriad where the old principals could not.