Eagle Technology now wholly owns training company New Horizons after calling in a receiver when staff could not be paid and buying out the remaining shares.
Eagle Technology had owned 51% of a joint-venture company called Integrated Learning Technology, which managed the New Horizons franchise. The remaining shares were owned by Computer Training Services.
Eagle Technology managing director Trevor Eagle says his company stepped in to pay staff in December after it was revealed there were not enough funds for the payroll. He says there was effectively a call made on capital (for staff payroll) by him as chairman of the company, and when that call wasn’t met by CTSL, Eagle called in a receiver, paid the staff and bought the remaining shares.
Late last year Computerworld spoke to Eagle about an anaonymous claim that Eagle Technology was trying to wind down the value of the company so it could pick up the shares for nothing. At the time Eagle said there was no thought of winding the company down, and that New Horizons was being pumped up with new capital.
Speaking last week, Eagle says staff weren’t paid through the usual pay process just before Christmas because the bank refused to pay as the account was in overdraft.
It was too late to give staff cheques or bank cheques, so Eagle Technology used Armour-guard to deliver the payroll — $95,000 to the Auckland and Wellington offices.
Eagle says New Horizons is now in a good financial position and morale is high. “We have no debt.” Eagle Technology and CTSL, which held the New Horizons franchise in New Zealand, formed the joint-venture company in December 1997. New Horizons has been operating in New Zealand for three years, expanding from seven Auckland staff to 60 in Auckland and Wellington.
Two CTSL directors phoned by Computerworld were either unavailable for comment, or declined to talk about the issue.