Veritas Investments Limited advises that it has initiated legal proceedings
against Gosh Holdings Limited (now Nosh Group Limited), the purchaser of the
business of Nosh Group Limited (now Old NGL Limited). The proceedings are to
enforce the agreement for sale and purchase of the Nosh business which
completed on 24th February 2017.
Veritas Chairman, Mr Tim Cook, said that the failure by Gosh Holdings Limited
(now Nosh Group Limited) to meet the committed payment schedule of the
creditors of the business is a breach of the Sale and Purchase Agreement and
has resulted in the legal action.
Gosh Holdings Limited (now Nosh Group Limited) has consistently failed to
meet its contracted financial commitments contained in the Sale and Purchase
Agreement.
The Veritas Group itself is a creditor of Gosh Holdings Limited (now Nosh
Group Limited) to the extent of $68,549. Gosh Holdings Limited (now Nosh
Group Limited) has failed to meet obligations to creditors in an amount of
$1,919,205. While those remain obligations of Old NGL Limited, Veritas is not
a guarantor and so has no financial exposure. Old NGL Limited has no assets
to meet the creditor payments that Gosh Holdings Limited (now Nosh Group
Limited) committed to pay.
When Veritas originally purchased Nosh, Veritas committed to meet all
creditors payments, which amounted to $3.9 million, and honoured this. Gosh
Holdings Limited (now Nosh Group Limited) made the same commitment to Veritas
upon the sale of the business, but has failed to meet that commitment.
Mr Cook said:
"We entered into this transaction in good faith after a rigorous process and
it is extremely disappointing that the Directors of Gosh Holdings Limited
(now Nosh Group Limited) have clearly failed and continue to fail to meet
their financial and legal obligations."
End CA:00302708 For:VIL Type:GENERAL Time:2017-06-16 16:14:40