Owner
Post by Franko10 ™ on Apr 11, 2006 6:13:23 GMT -5
Dear CMKX Owners Group Members,
On April 5, 2006 the DTCC issued a letter to all its participants regarding CMKM shares that were on deposit at the DTCC. If you have not seen the letter, it can be found at www.dtc.org/impNtc/reo/reo_9516-06.pdf
The DTCC has been communicating with representatives of the Task Force for several weeks. It has been apparent to me that the DTCC is encouraging its participants to withdraw their certs from deposit at the DTCC. The participants are the thousands of broker/dealers, banks and clearing firms that use the services of the DTCC. As I understand the process, the participants are being asked to send the DTCC WT’s (withdrawal by transfer instructions) so the DTCC can then forward that participant’s respective cert (or holdings) to the transfer agent for change into the name of the beneficial owner. The DTCC would then not have a depository position as to the shares represented by this transfer request. There have been DTCC participants (broker/dealers, banks and clearing firms) that for some reason have either refused or neglected to order WT’s of their positions even though such action has been clearly called for since November of 2005. The original deadline by CMKM for shareholders to obtain their certs was December 31, 2005 as mentioned in this letter from the DTCC. We had been seeing correspondence between the DTCC and various broker/dealers for several months noting that the DTCC was requesting that its participants obtain certs per the requests of CMKM. Several firms complied promptly to the directions of the DTCC and now have no security position in CMKM at the DTCC.
This directive dated April 5, 2006 was prepared by the DTCC officials as an internal memo to its participants. It is apparent that the DTCC wished to allow its participants the option to voluntarily request withdrawal of their certs by April 14, 2006. It is equally apparent that the DTCC is telling its participants that if any respective participant does not withdraw all CMKM certs on deposit or request that the DTCC transfer the participant’s certs to the Transfer Agent, then the DTCC will perform this task for the participant. We have received many inquiries regarding the meaning of this directive from the DTCC. The letter is self explanatory. By May 15, 2006, the DTCC will have no CMKM on deposit if the acts set out in this letter occur.
What does this mean to the participants? Once the DTCC forwards all certs to the transfer agent or its participants, the beneficial owners and customers of the participants must look exclusively to their respective broker for their cert. The brokers can no longer blame the DTCC or the Transfer Agent for any failure to provide a cert to its customers.
As one of the members of the Task Force, I can tell you I am very concerned because we do not anticipate any additional extensions beyond May 15, 2006. We continue to receive communications from shareholders who are unable to obtain certs from their brokers. The actions of the DTCC will assist the Task Force in its efforts to complete the distribution list of shareholders that will receive their Entourage stock.
I am making my final recommendations to the other members of the Task Force as to the final mail out to come shortly from the company. When the company approves the final mailout to the shareholders, I will comment further with more details about the implementation of that mailout.
Onward,
Bill
On April 5, 2006 the DTCC issued a letter to all its participants regarding CMKM shares that were on deposit at the DTCC. If you have not seen the letter, it can be found at www.dtc.org/impNtc/reo/reo_9516-06.pdf
The DTCC has been communicating with representatives of the Task Force for several weeks. It has been apparent to me that the DTCC is encouraging its participants to withdraw their certs from deposit at the DTCC. The participants are the thousands of broker/dealers, banks and clearing firms that use the services of the DTCC. As I understand the process, the participants are being asked to send the DTCC WT’s (withdrawal by transfer instructions) so the DTCC can then forward that participant’s respective cert (or holdings) to the transfer agent for change into the name of the beneficial owner. The DTCC would then not have a depository position as to the shares represented by this transfer request. There have been DTCC participants (broker/dealers, banks and clearing firms) that for some reason have either refused or neglected to order WT’s of their positions even though such action has been clearly called for since November of 2005. The original deadline by CMKM for shareholders to obtain their certs was December 31, 2005 as mentioned in this letter from the DTCC. We had been seeing correspondence between the DTCC and various broker/dealers for several months noting that the DTCC was requesting that its participants obtain certs per the requests of CMKM. Several firms complied promptly to the directions of the DTCC and now have no security position in CMKM at the DTCC.
This directive dated April 5, 2006 was prepared by the DTCC officials as an internal memo to its participants. It is apparent that the DTCC wished to allow its participants the option to voluntarily request withdrawal of their certs by April 14, 2006. It is equally apparent that the DTCC is telling its participants that if any respective participant does not withdraw all CMKM certs on deposit or request that the DTCC transfer the participant’s certs to the Transfer Agent, then the DTCC will perform this task for the participant. We have received many inquiries regarding the meaning of this directive from the DTCC. The letter is self explanatory. By May 15, 2006, the DTCC will have no CMKM on deposit if the acts set out in this letter occur.
What does this mean to the participants? Once the DTCC forwards all certs to the transfer agent or its participants, the beneficial owners and customers of the participants must look exclusively to their respective broker for their cert. The brokers can no longer blame the DTCC or the Transfer Agent for any failure to provide a cert to its customers.
As one of the members of the Task Force, I can tell you I am very concerned because we do not anticipate any additional extensions beyond May 15, 2006. We continue to receive communications from shareholders who are unable to obtain certs from their brokers. The actions of the DTCC will assist the Task Force in its efforts to complete the distribution list of shareholders that will receive their Entourage stock.
I am making my final recommendations to the other members of the Task Force as to the final mail out to come shortly from the company. When the company approves the final mailout to the shareholders, I will comment further with more details about the implementation of that mailout.
Onward,
Bill
