new surprise for mark bouris at troubled tz

http://www.theaustralian.news.com.au/business/story/0,28124,25849974-5016575,00.html



New surprise for Mark Bouris at troubled TZ

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CITY BEAT: Rebecca Urban | July 29, 2009
Article from: The Australian

MARK Bouris must be wondering how many more surprises await him at troubled technology tiddler TZ Limited, where he has taken on the chairman's job in a bid to smooth over some issues with a major financier.

Having spent the past few weeks trying to work out why TZ's financial accounts didn't add up, the Wizard Home Loans founder has received a letter from lawyers representing his predecessor Andrew Sigalla, claiming $1.16 million in unpaid fees plus health care and costs associated with the Chicago-based former chairman's visa.

The claim relates to a deed of release, otherwise known as a golden parachute, allegedly signed on June 2 -- the day that Sigalla "reluctantly decided to step aside in the best interests of the company and its shareholders".

It seems TZ's new Bouris-led board knew nothing of the generous gesture and has requested a copy of the deed before admitting or denying liability to the claim.

A co-founder of the fastening technology company, Sigalla resigned the day after TZ's major financial backer, US hedge fund QVT, issued a default notice, demanding immediate repayment of its $23m loan, plus interest. Strangely, investors knew nothing of this until weeks later when Bouris and Co moved in.

The new board has yet to smooth things over with QVT -- or advise the market on TZ's true financial state -- but investors have taken matters into their own hands.

Jan Redfern, a former executive director with the Australian Securities & Investments Commission, has confirmed she is providing legal representation and advice to a group of disillusioned shareholders.

It is understood both the Australian Securities Exchange, which recently questioned TZ on its lack of disclosure under the previous board, as well as ASIC are also keeping a close eye on developments