Infotronics’ key vendor partner, Kerio Technologies, is threatening legal action against the distributor after liquidators were appointed on November 11.
In a letter to Infotronics’ creditors, sighted by ARN, Kerio Technologies vice-president and general counsel, Steven B. Weinberg Esq, alleged Infotronics’ parent, S Central, siphoned funding from the business into its own accounts as Infotronics received payments from customers for goods.
“The actions taken by Infotronics these past few months we believe give rise to significant civil and possible criminal activity,” Weinberg stated in his email.
Kerio alleges that: The siphoning of funds out of Infotronics was illegal; the transfer of assets from Infotronics to S Central were not at arms length; and the directors of Infotronics, had knowledge of insolvent trading.
The vendor has appointed Australian law firm, Middletons, to represent it in legal proceedings against Infotronics. Weinberg is also calling on other unsecured creditors to get in contact with its lawyers.
In his letter, Weinberg said Kerio was taken by surprise at news of Infotronics’ demise, along with the recent events surrounding Infotronics’ owner, S Central.
S Central’s business assets were sold to managed services provider, Brennan IT, earlier this month.
“In Kerios’ case, Infotronics ran up a debt of over $US65,000 for software purchased since June this year. Kerio made numerous attempts to secure payment from Infotronics, only eventually to be referred to S Central,” the letter stated.
“We later discovered that Infotronics was being wound down as a business while at the same time continuing to place orders for our software that we believe the evidence will show they had no means or intention to pay for.”
Kerio plans to advise liquidators, Romanis Cant, of its intentions and request a thorough investigation its claims regarding Infotronics’ financial dealings prior to liquidation.
Weinberg also offered to set-up a conference call with interested parties wanting to pursue legal action against Infotronics later this week.
“Depending on the findings or lack thereof of the liquidators, our next step will be to pursue a lawsuit against the relevant parties for numerous civil claims,” Weinberg stated.
Middleton's attorney, Stephen Hume, told ARN it was looking at avenues of recourse that may be open to creditors. He declined to comment further on its dealings with Kerio.
ARN has contacted S Central for comment. Romanis Cant co-liquidator, Simon Nelson, was unavailable for comment at time of publication.