MARK Bouris's TZ Limited is in the process of preparing a statement of claim detailing allegations against its former chairman, Andrew Sigalla, after court proceedings in Sydney this week.
The technology company, together with the Australian Securities & Investments Commission, was in the Supreme Court of NSW on Tuesday and Wednesday this week in relation to complaints against Sigalla, his private company ZMS Investments and four unidentified parties.
It follows a forensic accounting investigation conducted by TZ recently that revealed that its cash reserves, as disclosed to investors at the end of March, had been inflated by more than $6 million. The company has since issued letters of demand to certain previous directors of the company, including Sigalla, seeking the return of significant sums of money.
ASIC and the company last month obtained freezing orders over the assets of Sigalla and several associates.
Unfortunately, we are unable to report the contents of the judge's orders as they were handed down in confidence, which might explain why TZ has yet to issue a statement to the stockmarket. It is believed Sigalla will defend the proceedings.
The company's shares have been suspended from trading since mid-year when its previous board defaulted on a $24m loan agreement with convertible noteholder QVT.
