TDZ HOLDINGS INC.: News Release.TORONTO -- TDZ TDZ The Dead Zone (movie) TDZ Touchdown Zone TDZ Temperature Danger Zone (food safety) TDZ Tvornica Duhana Zagreb (Croatian tobacco factory) TDZ thiazolidinediones HOLDINGS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. ., today announced a Notice of Change of Auditor. The Company has filed a Notice of Change of Auditor pursuant to a disagreement as defined by National Instrument 51-102. Ernst & Young LLP LLP - Lower Layer Protocol , Chartered Accountants char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. (the "Former Auditor") are presently the auditors of the Company. On September 29, 2004, the Company's Board of Directors decided (i) not to recommend that the Former Auditor be re-appointed at the next annual meeting of the shareholders of the Company, which is to be held on December 2, 2004, and (ii) to recommend that Rich Rotstein, Chartered Accountants (the "Successor Auditor") be appointed as auditor of the Company at the said annual meeting of the shareholders of the Company. The following "Reportable Event" has occurred. On July 29, 2004, the Company announced completion of a transaction involving the sale of substantially all of the real estate assets held by three partnerships in which the Company has an indirect minority interest. As part of the transaction, the unlimited guarantee of the Company in respect of certain indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of Nualt Enterprises Inc. ("Nualt") was changed to a limited recourse Limited recourse A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse. guarantee. As a result of the transaction, the lenders to Nualt now have recourse only to the shares of Nualt held by the Company to satisfy any claims made under the Company's guarantee. The book value of the Company's share investment in Nualt is $1,000. The estimated fair value of the liability represented by the guarantee has been deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from the book value of the share investment to arrive at the amount recorded for the net investment in Nualt. As at June 30, 2004 this has resulted in a negative amount of $71,485,000 for the net investment in Nualt, comprised of obligations due to guarantee of debt of Nualt of $69,776,000 and cumulative equity share of Nualt loss of $1,709,000. Nualt's lenders have not demanded payment under the guarantee. The liability is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent a future demand for payment being made by Nualt's lenders. It is the Company's opinion that the deficit arising from the net investment in Nualt has been reduced as a result of the change to a limited recourse guarantee on July 29, 2004. It is the Company's opinion that the obligations deducted should not be greater than the book value of the assets to which recourse under the guarantee is limited, being the shares of Nualt held by the Company, and that the net investment in Nualt should not be negative. Members of the Audit Committee and the Company's management have discussed the transaction with the Former Auditors. The Former Auditors disagree with Verb 1. disagree with - not be very easily digestible; "Spicy food disagrees with some people" hurt - give trouble or pain to; "This exercise will hurt your back" the opinion of the Company. The Former Auditor's opinion is that the $71,485,000 net investment in Nualt remains a liability and that the conditions for the derecognition of this liability do not exist. The Company discussed the transaction and their opinion with the Successor Auditor. The Successor Auditor substantially agreed with the Company's opinion. The Notice of Change of Auditor was distributed to the Former and Successor Auditors and they responded that based upon their knowledge of the relevant information regarding the corporation, they are in agreement with the information contained in the Notice of Change of Auditor. |
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