Internet integrator XT3 has won a small battle in its struggle to secure promised funding from its Hong Kong parent, Chinadotcom.
XT3 is suing its parent for $9.4 million after Chinadotcom failed to cough up development funds promised during a merger agreement signed last year. The Supreme Court has rejected Chinadotcom's request for a stay of proceedings.
In late February, XT3 was forced to cull 29 staff from its full time roster and a further nine contractors. But things are not going to get any easier for XT3, in desperate need of funding to secure its future. Its parent has announced plans to consolidate offices and reduce its workforce by 20 per cent due to poor economic conditions. Over 400 staff are expected to be axed, while non-core assets and operations will be divested.
Officials at XT3 were unable to comment before press time.