Renaissance has completed the sale of its distribution business to Exeed, although over $800,000 has been placed in a solicitor’s trust account pending resolution of certain details.
In a statement to the NZX, Renaissance says while it has received funds of $4.3 million for the division, a sum of $837,373 has gone into the trust while the companies settle ‘the final value of the inventory sold to Exeed, claimed breaches of warranties by Renaissance (which Renaissance absolutely refutes), the amount of accrued leave payable to Renaissance’s employees who transferred to Exeed, and provision of certain business records to Exeed’.
"Renaissance is comfortable with its legal position, and expects that the above matters will be resolved to its satisfaction,” the statement reads.
In the meantime, Renaissance is in breach of a banking covenant requiring the company's debtors not to exceed 100% of bank loans; however, Renaissance ‘continues to have the support of its bankers’, the statement adds.
Renaissance has also reached an agreement with Apple for the supply of products to the company’s Yoobee retail outlets, by providing a guarantee on amounts owing.
At the beginning of this month Renaissance received a payment of $785,000 from its insurers for losses suffered in and after the February Christchurch earthquake.