Software company Information Management Associates (IMA) entered into liquidation last week, finally falling victim to internal disputes raging between its directors for over a year.
Directors Robert Connell and Brian Timms accused each other of stripping the company bare, according to a statement released by insolvency firm Prentice Parbery Barilla, appointed to handle the liquidation.
"The two were fighting over the distribution of profits between themselves. Connell got discouraged and petitioned the court to appoint a liquidator," claims Max Prentice, official liquidator from Prentice Parbery Barilla.
Starting in May last year, the internal acrimony culminated in the company's demise, according to Prentice. "They are endeavouring to sort out their differences but if it can't be finalised by mutual agreement it will be sorted out in court," Prentice says.
The four-year-old company, supplier of data warehousing software to such blue chip clients as Woolworths, Franklins, Mercantile Mutual Insurance, and National Australia Bank, will sell off its assets in a bid to give creditors between 50 and 100 cents in the dollar.
"I have already realised in excess of $200,000 which will be distributed amongst creditors and the directors," claims Prentice.
Connell still has control of IMA's product line and has continued to service clients, according to Prentice. "Most of IMA's clients are tied into these products and need continued maintenance. Rob [Connell] has continued to service them."
This arrangement will continue with Connell securing a franchise agreement with software company Carleton Europe, which currently supplies IMA with its product range. "Essentially it will be business as usual except with only one director," explains Prentice.