takeover...?, page-2

re: takeover...? no gone!! Sydney - Wednesday - Nov 17: (RWE Australian Business News) -
Environmental Solutions International Ltd today announced the
Commonwealth Bank of Australia was appointing a receiver to the company.
This follows the withdrawal of Zenon Environmental Inc from the
agreement to take shares in Environmental Solutions International (ESI).
Directors said the withdrawal came about as follows:
* ESI received a claim from Belmadar Constructions Pty Ltd, for
about $2.2 million. Apart from a minor amount, the claim has been
strongly disputed by ESI.
* On Friday November 12 an adjudicator appointed under the
Victorian Building and Construction Industry Security of Payments Act
determined that ESI should pay $1.39 million into a separate account as
security for the claim. This dispute relates to work carried out on the
Mildura West Water Treatment Plant Contract in Victoria.
* The claim will be resolved in accordance with the dispute
resolution procedures of the contract.
* Following advice from ESI's legal representatives, ESI
disputes many of the conclusions of fact and law arrived at by the
adjudicator. Separately from the adjudication, ESI has a claim for
liquidated damages claim against Belmadar for up to $475,000.
* As a consequence of the adjudication, ESI was advised by
Zenon that it did not wish to take up an equity position in the company
as advised previously to the market.
The ESI board will work with the receiver to minimise the impact
on staff, creditors and clients.
Shares in Environmental Solutions International were suspended
from trading today, and last sold at 6.6c.