Chant West Holdings told shareholders on Wednesday it had been advised that its legal proceedings against Zenith company CW Bidco, of which Five V Capital has a controlling interest, were scheduled to be heard in court.
The companies had signed off on a business sale agreement in February, saying CW Bidco would buy Chant West for $12.5 million.
But CW Bidco indicated at the end of March that it would be reversing out of the deal in light of the coronavirus-shaken market conditions.
Chant West Holdings then launched the legal action in April, seeking an order for specific performance against CW Bidco, compelling it to complete the sale.
Chant West Holdings has promised it will give a further update to the market on the court proceedings in due course.
It also completed the sale of its other core business on Wednesday, casting off financial planning software vendor Enzumo for $1.5 million to financial advice service provider Centrepoint Alliance.
It had entered the agreement after the Chant West sale hit its roadblock.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
