TZL scores $500k settlement deal

Shares in security technology developer TZ Limited (ASX:TZL) surged 13.8 per cent on Monday on news it has negotiated for nearly $500,000 in settlement payments.

The company said it had entered into deeds of settlement with two individuals, including a former director of the company.

The supreme court has meanwhile varied the freezing orders obtained by ASIC against the pair in order to allow the payment to take place.

TZ Limited - which provides infrastructure protection, packaged asset delivery and other security services - had previously disclosed it had loaned significant sums to these individuals but had not been paid back.

In a statement, the company said the settlement avoids the need for costly or drawn out litigation.

Under the terms of the settlement, the payment is due by 21 February.

TZ Limited is also currently involved in legal proceedings against Andrew Sigalla, ZMS Investments and BZI Pty Ltd, but said the two cases are unrelated.

TZL shares closed out Monday's trading at $0.330.


Copyright © 2011 IDG Communications, Inc.

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