The beleaguered subsidiary of New Dawn Holdings, Prophesy, which last month faced its third liquidation bid in as many years, has paid its outstanding bill with IT consulting company DeARX.
The Oracle solutions-provider found itself in hot water after it could not pay an outstanding bill of about R80 000 for services rendered - one that had grown to about R120 000 due to interest accrued, and legal fees.
However, after being served with legal papers to be liquidated in the Johannesburg High Court, the company transferred the full outstanding amount to DeARX`s bank account on 1 July.
"They initially wanted to give us a post-dated cheque, which we refused," says DeARX MD Andre van Heerden. "I think they got the fright of their lives when we served them with papers. We`re done with them."
Prophesy financial director Ernie Kotze says while the company had initially asked for leave until the end of July to pay the outstanding balance to DeARX, the hope all along was to pay as soon as possible.
"As our cash-flow improved, we gave DeARX priority and settled with them," he explains.
He points out that the DeARX bill amounted to more than a million rand at one stage, and it was only the last two instalments that were causing unhappiness.
He says while Prophesy has other long-outstanding bills due, arrangements had been made with all its creditors and none were threatening the company with liquidation, like DeARX had done.
A disillusioned Van Heerden, on the other hand, says is it worrying that he had to take extreme measures to get his money.
"Once a creditor takes legal steps, they [Prophesy] are quick to settle," he says.
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