9.8
Litigation
The liquidators of Healthzone have made a claim against two entities in the Vitaco Group and have commenced proceedings in
Australia. Those proceedings have not yet been served on the Vitaco Group.
The claims made by the liquidators to date relate to five payments which were made by Healthzone to Vitaco Australia totalling
$3,365,199.08 in the six month period prior to Healthzone being placed into voluntary administration on 8 November 2011. The
liquidators allege that such payments comprise ‘unfair preferences’ and, are therefore voidable and should be repaid to Healthzone.
Should Healthzone be successful in its claims against Vitaco Australia, Vitaco Australia will be required to repay to Healthzone
the amount of the payments received by it from Healthzone in the six months prior to it being placed into voluntary administration
(together with interest on the amount). Vitaco could also be liable for the liquidators’ costs of the proceedings if the liquidators are
successful in their claim. However, Vitaco Australia strongly denies that the payments it received from Healthzone in the period
prior to it being placed into liquidation constitute ‘unfair preferences’ and is vigorously defending the claims made against it by
Healthzone. The Directors believe that these claims will not have a material impact on the Vitaco Group.
VIT Price at posting:
$2.64 Sentiment: Buy Disclosure: Held
