Australian tax software developer Solution 6 has three months to sort out its finances, following an agreement with its main creditor, Integral Business Finance, in a Sydney court on Friday 13 March.
The action was ‘vacated’ until 1 July, when the full repayment of Integral’s Aus$7m (#2.8m) loan falls due. Integral sought appointment of a receiver after alleging Solution 6 was late in paying Aus$38,000 (#15,000) interest on the loan.
Brian Beattie, UK manager for Solution 6, said the action was dropped when Solution 6 announced it would sell shares in OzEmail worth Aus$24m (#9.6m). The companies will continue negotiations, he said.
The Australian press reported Solution 6 had run up a Aus$22m (#8.8m) loss in 1997, which had been offset by the sale of its Access One subsidiary to OzEmail for Aus$25m (#9.9m), $5m (#1.9m) in cash and the rest in shares, for which it needed permission to sell.
Last Friday, Solution 6 reported a net profit of Aus$11.85m (#4.73m), including abnormal items from the Access One sale. Its operating profit was Aus$208,000 (#83,000).
A company source said Solution 6’s UK subsidiary had transferred funds to cover the interest payment. But the two days’ clearance required for the transfer had triggered a technical default.
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