8 July 2014
ComOps Limited (ASX: COM) (ComOps or the Company) advises that it and its subsidiary, ComOps Solutions Pty Ltd (ComOps Solutions), have entered into a Settlement Deed in relation to the claim filed in the Supreme Court of New South Wales by Markinson Software Solutions Pty Limited (Markinson) (Claim), which was previously disclosed to the market on 24 March 2014 and 16 June 2014.
The Claim related to the sale of the Korellus ERP business in August 2013 (Korellus Sale) and involved a dispute in relation to book debts and the payment of transfer duty. Separately, there was a dispute regarding the net tangible asset value under the Korellus Sale, which was referred for expert determination.
Subject to certain conditions precedent, including the payment of a settlement sum by ComOps and ComOps Solutions to Markinson, the parties to the Settlement Deed have agreed to take all steps necessary to discontinue the Claim by consent. Under the Settlement Deed, the parties have also agreed to a net tangible asset value for the purposes of the Korellus Sale so that there is no need to continue with the expert determination.
While the terms of the Settlement Deed are confidential, the payment of the settlement sum is not expected to have a material effect on the financial position of ComOps and adequate provision has previously been made in the Company’s financial statements.