TZL 0.00% 4.5¢ tz limited

bouris defends legal action

  1. 1,232 Posts.
    From the Australian

    CELEBRITY banker Mark Bouris has successfully defended legal action brought by a group of Queensland bookmakers who had accused him of hocking the assets of a technology company he is attempting to turn around.
    A bid by TZ Limited investors and horse racing identities Lindsay Gallagher and Ramon Karangis to access company documents has been thwarted by the NSW Supreme Court, after they failed to make a case for the demand.
    The pair had requested a copy of a convertible note deed between TZ and the unrelated TZ Resurgence Nominees, which lent the cash-strapped company $1.5 million in July and August.
    The notes are secured over the assets of the company, which has been suspended from trading since June.
    Judge Reginald Barrett dismissed the application and all 17 of the investors' concerns, ruling that allegations of illegality were "entirely undeveloped and unexplained".
    The decision, which was handed down on November 17, coincided with TZ's own legal action against several past directors, including previous chairman Andrew Sigalla, to recoup $14m in loans and payments.
    The businessman has denied any wrongdoing.
    According to the 22-page decision of Justice Barrett, Mr Karangis and Mr Gallagher, who is an associate of Mr Sigalla's, met with Mr Bouris on September 14 to express concerns that the convertible note was "highly illegal".
    "You basically hocked all of the assets of the company for $1.5m," Mr Karangis is alleged to have said, adding that he had received advice to that effect from six QCs.
    "With respect, you do not understand how loan security works," responded Mr Bouris, who is best known as the founder of Wizard Home Loans and is the star of reality television show The Apprentice.
    The pair then offered to invest $5m on condition the board resigned.
    However, Justice Barrett defended the right of the board to raise money.
    "TZ was in urgent need of funds. The convertible note deed was the chosen method of dealing with that pressing problem," he said.
    "While there have been general allegations of legal wrong or non-compliance with ASX listing rules, nothing even vaguely specific has been alleged in such a way as to give . . . substance to the allegations."
    The judge also noted that Mr Gallagher and Mr Karangis had declined to take up Mr Bouris's offer to invest on the same terms as the convertible noteholder.
    He awarded costs in TZ's favour.
    Separately, the Australian Taxation Office has lodged an application to wind up Mr Sigalla's property business, ZMS Investments.
    Mr Sigalla is expected to resist the application.

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