Tox Free Solutions has issued a statement to the Australian Securities Exchange warning of a $1.2 million exposure to a failed company.
"The debt arises from emergency response and cleanup work performed by Tox Free during the financial year ended 2009," the statement said.
"The work was "one off" in nature and not a recurring revenue stream attributable to Tox Free's normal services to its existing customer base.
"The Department of Environment and Conservation were also involved with the management of the emergency response incident and the Company will be discussing this situation with them," Tox Free said.
The company said it was unsecured in relation to the amount owing.
See company statement below:
Tox Free Solutions Limited (Tox Free) wishes to advise that a debtor to a wholly owned subsidiary of Tox Free has been placed in liquidation. Tox Free has a maximum exposure from this debtor to its Net Profit After Tax for the year ended 30 June 2011 of approximately $1.2 M.
The debt arises from emergency response and cleanup work performed by Tox Free during the financial year ended 2009. The work was "one off" in nature and not a recurring revenue stream attributable to Tox Free's normal services to its existing customer base. The Department of Environment and Conservation were also involved with the management of the emergency response incident and the Company will be discussing this situation with them.
Tox Free is unsecured in relation to the amount owing, and will immediately be seeking legal and financial advice in relation to the recoverability of the debt.
Until a review of the debtor has been carried out and reported by the liquidator and sufficient legal and financial advice has been received by Tox Free, including the outcome of the insurance claim regarding the incident, no estimate of the provision ( if any) against the carrying amount of the debt can be made.
Tox Free will keep the market informed in relation to this matter.
