AIM-listed cash shell Baltimore Technologies says it intends to apply for a winding-up order against small cap payments outfit earthport if the company fails to meet costs applied for through the courts.
Earthport, which has been purusing Baltimore for £13 million damages in relation to a deal signed between the two companies in 2001, announced last month that it was considering a possible offer for the one-time dot.com tech star.
In a statement to the Stock Exchange today, Baltimore says earthport has failed to provide further information about its claim by 14 January 2005, as required under a High Court Order of 21 December 2004.
Baltimore has since applied to the courts for a further order that, unless earthport provides to Baltimore further information about its claim by 28 January 2005 and pays £750 costs plus interest within 24 hours, earthport's claim will be struck out.
Baltimore states that if costs and interest (if awarded) remain unpaid, the company expects to apply for a winding up order.
Baltimore also notes that earthport's accounts for year ended 30 June 2004 announced on 31 December 2004 were qualified and indicate a negative net worth in excess of £6 million, and an immediate need for £1.378 million to meet creditors' demands.
In the RNS release of its final results for the period ended 30 June 2004, dated 31 December 2004, earthport announced: "The company has an immediate requirement to raise further funds' and 'The company has also entered into an investment agreement, subject to the completion of due diligence and agreement of final terms by 10 January 2005, for the investment of up to £2.4m in three monthly tranches of up to £0.8 million, through the issue of convertible loan notes by March 2005."
Baltimore notes that earthport has not made any further announcement to date about the financial position and potential fundraising.