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Username: griffiths
Date/Time: Thu, November 16, 2000 at 6:04 AM GMT
Browser: Microsoft Internet Explorer V5.0 using Windows 98
Score: 5
Subject: ICANN Board - please review .per JVTeam Financials


                In the report containing the analysis for the above application, the availability of funds to finance a projected requirement for $40.5M has not been specified, or even mentioned which could be a serious oversight.

NeuStar will own 55% of JVT, but only has cash assets of $8M, and a letter from Warburg Pincus stating that they will support NeuStar in their bid.  There is no evidence as to how this capital support is to be structured, which would therefore imply that this has yet to be resolved, or even addressed.  Furthermore, within that letter, Warburg Pincus have not specifed the level of funding they will commit - are they prepared to back the full $22.3M (55% of the $40.5M) required?  Within the financials submitted, no evidence for the stated cash reserves can be identified, and furthermore these show an erosion by nearly 14% of the asset value of the company, a reduction of $18M.  They may need to hang onto those cash reserves!

The same questions would appear to be applicable to Melbourne IT.  They state that they have "initiated discussions with both its house broker and principle banker on raising its share of the financial contribution" - and later states "would provide Melbourne IT's contribution to the bid provided that appropriate commercial underwriting and funding terms could be agreed".  Surely this is a long winded way of expressing that there is no funding in place, nor even the suggestion of any commitment.  The same letter refers the reader to Appendix 4B for Melbourne IT's full financial information, which does not appear to have been submitted.



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