Authorised representative network Resilium says it is focusing on the growth of the business as equity and financial arrangements with Coverforce are unwound following court rulings.

NSW Supreme Court Justice James Stevenson has set down dates for the repayment of loans to Coverforce and the return of profits to Resilium, which was spun off from Suncorp through a management buyout (MBO) in March last year.

“We have been growing the Reslium business since the MBO last year and look forward to continuing to grow the business and cementing our position as the largest independently owned broker in terms of market position,” MD Adrian Kitchin told insuranceNEWS.com.au.

Coverforce provided an interest-free loan to fund the management buyout and entered into a share purchase deed with Mr Kitchin and partners Benjamin Hastie and Drue Castanelli.

But a later AUB Group acquisition offer to Coverforce private equity investor Pemba triggered a dispute over shareholdings and the validity of stock issuance to the Kitchin parties.

The Supreme Court found last December that Coverforce did not have board approval to complete the Resilium transaction or to issue the new shares, and the Kitchin parties were entitled to unwind the arrangement or recover damages.

Justice Stephenson has since said the $25 million loans, plus interest, should be paid by March 31 and Coverforce should return $8.27 million profits derived from Resilium by May 24.

“We are pleased that the court record now shows that Coverforce has been found to have engaged in deceptive and misleading conduct in its dealings with my business partners and [me],” Mr Kitchin said.

Separately, Pemba has flagged action it intends to take against Coverforce, MD Jim Angelis and CFO and board member Jitendra Dutt requiring the parties to provide information.

Justice Stevenson has released Pemba from undertakings it had given around documents it has already accessed, subject to certain conditions.

NSW Supreme Court Lists also show an appeal by Mr Angelis is listed for a directions hearing on September 2, while another matter was listed for a directions hearing today.