One of Square One's vendors plans to put the company into liquidation, if it does not fork out the almost R1 million he says the company owes him.
Agang Cabling Solutions CEO Deon du Plessis said yesterday the company owed him close on R1 million for work he had done for it.
In addition, before the money was paid, Square One had offered to purchase Agang, through subsidiary Structured Networks, since renamed Structured Infrastructure Solutions. However, the offer did not materialise, according to Du Plessis.
Du Plessis said the matter had dragged on for about 18 months, and seven months after the agreement to sell Agang, no paperwork had been forthcoming. “When I asked how far the acquisition was, no one could tell me.”
Square One has denied it owes the company money, saying the deal was between Structured Networks and Agang, and did not affect it. CEO Craig Alexander said Square One was solvent and not under liquidation. “Not as far as I am aware.”
Du Plessis cannot understand why the company denies it owes him money. “I can't understand why they are denying it now.” He will go ahead with plans to liquidate unless the matter is resolved before it ends up in court, he noted.
Square One has until 8 June to file its opposing arguments.
Its primary service focuses on providing niche business-enabling technology solutions.
Troublesome allegations
Lawyers for Square One said the liquidation application was “vexatious” and that any claim would be opposed, as Square One was solvent.
In its latest results for the year to December, Square One said it had cash and cash equivalents of R10 000. It generated R2.4 million from operating activities.
The filing parties, Du Plessis and his brother, had threatened to hand over Square One to debt collectors, as well as previously having made other “threats to disrupt sensitive government institutions and installations performed at these sites”. The brothers had sold the debt to a collection agency, which had threatened Square One's financial manager, claim Square One's lawyers.
The issue, which arose in December last year, appeared to be based on invoices, said the lawyers. But further inspection indicates the agreement was based on Square One's takeover of Agang. The claim, resolved a few weeks ago, was based on alleged unpaid invoices and an alleged exit agreement, the lawyers said.
“It is further interesting to note that the amount claimed varies from time to time, not only in quantum, but also from a causation point of view.”
However, the lawyers said, the test was one of solvency, and the company was solvent, even if the claim was due and owing. The lawyers said the claim was abusive and the matter would be “vigorously” opposed. “Square One should not be held to ransom and pay amounts which are not due, owing and payable.”
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