iCollege hit with court action

11/08/2017 - 10:59

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iCollege is being taken to the Supreme Court by the former director of a company bought by the sports-focused online education provider in 2015.

iCollege is being taken to the Supreme Court by the former director of a company bought by the sports-focused online education provider in 2015.

iCollege said legal proceedings had been commenced against the company by Michael Walker, who was the director and shareholder of the Management Institute of Australia Group, which iCollege bought in 2015.

The proceedings will take place in the Supreme Court of NSW.

Mr Walker, through is vehicle Walker Enterprises, claims it is owed $9 million plus interest under terms of the sale agreement.

In a statement, iCollege said it disputes the claims and would be defending the proceedings.

“It also anticipates counterclaiming for damages arising from the circumstances relating to the entry into the share sale agreement, and breach of warranties there-under,” the company said.

iCollege in late 2015 undertook a restructure and review of the MIA group of companies post-transaction, and said it had found a number of inconsistencies which later forced iCollege to impair the asset by $4.8 million.

iCollege had withheld payments to Walker based on those inconsistencies.

Shares in iCollege were 33.3 per cent lower to 1 cent each at 11am.

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