Former CEO Mark Smyth, through Romarcam Investments, is seeking $238,000 from CityView for consultancy services, a claim which CityView says is without merit. With a cash position of $239,000 and debt of $5000 the firm was forced to seek an indemnity from its major shareholder.
“Midwestern Oil Pte Ltd will undertake to make available to CityView, sufficient funds to make full payment of the said claim,” said Midwestern in a letter from March which CityView released to the Australian Stock Exchange last Friday.
It made an in-principle decision to loan not less than A$100,000 to CityView to cover its operating expenses in the interim.
CityView said “our cash flow projections have shown that even without the loan from Midwestern Oil Pte Ltd, CityView has sufficient funds for its operating expenses until its capital raising exercise is completed.”