Financial services firm First Capital Group (First Capital) has agreed to pay $250,000 to Melbourne-based property group Wentworth Mutual, ending a two year purchase dispute between both groups.
As part of the settlement terms, the parties made no admission of liability, and agreed to remove its fixed and floating charge secured against First Capital.
"The removal of the charge allows First Capital the freedom to move the business forward and enhances our ability to execute funding and commercial transactions," First Capital acting managing director Tom Wallace said.
"We are very pleased to have shed the last of the legacy issues the company has been challenged with over the last 12 months.
With the new management team in place and with the substantial support of Rockstead Capital, First Capital management is focused and working hard to reinvigorate the company and deliver better outcomes for our shareholders going forward."
First Capital made a note in its 2007 annual report referring to a $2 million claim made by Wentworth against First Capital.
