Centrepoint 'strong' in the face drawn out legal action

Last week, Aviva Asia commenced legal action against Centrepoint Alliance regarding a breach of warranty over the purchase in August 2012 by Aviva of a Centrepoint-owned company, Fifth Floor, registered in Singapore. Aviva Asia is seeking relief in the sum of S$988,037.09 (AU$ 988,995.87), plus interest and costs and any other relief that the court "deems fit".

In a statement to the ASX yesterday, Centrepoint said that it will "defend the proceedings and is confident of its position".

Centrepoint CFO John Cowan said that the company has the resources to deal with "any possible outcome from the legal proceedings".

"These sorts of proceedings can take many months, if not years to take their course and we will continue to update the market on any further developments," he said.

"Centrepoint has successfully dealt with other legacy issues while continuing to invest in the growth and transformation of our business, and support our adviser networks."

As at December 2015, Centrepoint held cash and equivalents of $12 million and total assets of $183 million.

In its ASX statement, Centrepoint noted that Aviva Asia's statement of claim is past the three-year warranty period in the sale agreement.