Liquidators of defunct system integrator, Leading Solutions, settled with Queensland-based distributor, Cellnet.
According to a statement on the ASX, liquidators alleged Cellnet received the money as an unfair preference in the six months prior to Leading Solutions going into administration in October 2009. At the time of liquidation Leading's debts exceeded $12 million.
In February, Cellnet denied any liability under the claim, which it received from liquidators to the tune of $1.2 million
Cellnet stated the terms of settlement were confidential and had been settled. It is expected to have an immaterial impact on Cellnet’s net profit for the 2011 financial year, ending June 30.
The distributor is anticipating a similar result to its 2010 performance when it recorded $1.5 million in net profit.
McGrath Nicol were appointed as the liquidators of the Leading Solutions company shell in December 2009.
The business was sold to its rival, Synergy Plus, which suffered a similar fate in March this year. Receivers revealed the company had been in significant financial trouble for some time, owing creditors more than $34 million.
McGrath Nicol has not responded to calls for comment at the time of publication.