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IWEEK, ConvergeNet sued for R37m

IWEEK Page 6

ConvergeNet sued for R37m By Nicola Maccon, ITWeb JSE-LISTED ConvergeNet is being sued for R37 million for pulling out of an 11th-hour deal to rescue the now defunct Choice Technologies about two years ago. The lawsuit, filed by Choice's joint liquidators, has taken over 12 months to prepare and is expected to take several years to wrap up. The liquidators are going after ConvergeNet, as they believe the agreement was a done deal and Choice would have been saved if ConvergeNet had not pulled out. ConvergeNet is defending the action and has filed an exception, arguing it has no legal basis. The exception will be heard on 21 September. The company is in turn threatening to sue the liquidators over money it pumped into Choice to keep it afloat, after it was put into liquidation towards the end of 2008.

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