Management has advised the shareholders. The half yearly results included as a contingent liability
"Switchcorp A claim for unspecified damages relating to the termination of the proposed acquisition of Switchcorp by Mul in 2003 was lodged during the Year ended 30 June 2004. The quantum of the claim has yet to be determined. The company has denied liability and the directors are of the opinion that no loss will be incurred."
Mul originally announced in Nov 2002 "that it had agreed the terms of agreement to acquire to secure 51% OF Swithcorp following a capital raising in this proposed subsidiary. Mul did not anticipate it would require to raise additional capital in Multimedia to achieve this result".
What is interesting about Switchcorp is that the company was only registered on 27 August 2002, still has share capital of $7,600 and one of the two directors is a Mathew STARR (I'm guessing a brother of Clinton).
There is no evidence that the company has ever traded, it is not listed in the White or Yellow Pages. I can also find no mention of the size of the claim or the basis, however if it is true that it is $46.0m, it would obviously be an ambit claim, with MUL only having net equity of $9.4m as 31/12/2004 ---- MULs Supreme Court Trial date: 3 October 2005 Claim Amount Against MUL: $46+m
NWT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
