Acta (LON:ACTA) has applied for the Italian equivalent of Chapter 11 bankruptcy as it seeks to head off a disgruntled minority shareholder in a subsidiary company.
The cash-strapped Italian company has asked for trading in its shares to be suspended on AIM and has applied to enter into "Concordato" while it moves to protect the assets and intellectual property of the company.
Acta has been knocked for six by a court decision in Florence ordering it to pay a €1.3mln arbitration award relating to a patent owned by group subsidiary IdeaLab.
The verdict granted Mrs Del Bono, a 10% shareholder in IdeaLab, provisional executive power, such that she could take enforcement against Acta company to recover the €1.3mln due under the award.
The company has tried and failed to negotiate a mutually acceptable settlement of the dispute and now concedes there is no prospect of an agreement that will allow the company to continue to trade.
If granted the request to enter into "Concordato" the company will be able to protect the assets and intellectual property of the company from any further legal action from a subsidiary minority shareholder.
"There have been a number of parties showing interest in developing further commercial relationships with Acta because of the distinctive capabilities of its alkaline membrane electrolyser. The board is determined to ensure that maximum value is obtained for shareholders and other parties going forwards," the company said.