Renaissance has settled legal action it had begun against Exeed and withdrawn all proceedings.
Renaissance had taken legal action against Exeed after it withheld funds, the majority of which were placed in a solicitor’s account pending resolution. The legal action was over disputes to the value of about $400,000 concerning alleged breaches of warranties by Renaissance, sick leave/long service leave, business records and fixed assets.
The former IT distributor released an official statement by Chairman Colin Giffney on behalf of the board today, saying:
"The matters under dispute have been agreed to and settled to the satisfaction of both parties and all proceedings lodged by Renaissance against Exeed have been withdrawn," Giffney says.
At the time of the deal, Techday reported that Renaissance received funds of $4.3m for its distribution division, with the above sum moved into a solicitors trust while the companies settled “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.”
As the majority of funds were placed in a solicitor’s trust account pending resolution, Renaissance said management on both sides engaged with goodwill but on several occasions 'were advised that management had agreed but on each occasion the agreement was refuted.’
At the time of the agreement, a statement Renaissance read:
“Renaissance is comfortable with its legal position, and expects that the above matters will be resolved to its satisfaction.”
And all matters have now been resolved with today's announcement, released on the New Zealand Exchange.