I will re-open AppChat: Holdsworth
John Holdsworth says he will re-open his mobile company, AppChat, giving South Africa a mobile network it deserves.
Holdsworth told BusinessTech on Friday (28 June) that he was forced to liquidate his start-up venture due to the vast amounts of capital it had consumed amid an ongoing legal dispute with listed ICT firm Reunert.
“It is good legal strategy for a large company with to out-spend, out-litigate and exhaust the resources of a small company or private individual,” he said.
The company’s founder intends to file numerous legal claims against Reunert during the course of the week, which would also include a trip to the Public Protector.
Reunert originally brought an application in March 2012, in which it sought to enforce a contractual restraint of trade against Holdsworth and obtain interdicts preventing him and AppChat from ever competing against it.
The case was founded on an allegation by Reunert that AppChat was intending to directly compete with a mobile VoIP application that Nashua ECN were developing and had planned to launch imminently.
Holdsworth was the founder and CEO of ECN (Nashua), a provider of IP-based next generation network services. He sold that business to Reunert in July 2011.
He denied Reunert’s allegations, claiming that ECN had never traded in the mobile market and that its entire business was in the fixed line market.
Holdsworth was granted leave to appeal following a ruling delivered in the Supreme Court of Appeal in Bloemfontein on 25 January.
Under current court orders, AppChat is under restraint of trade until September 2014.
Holdsworth said he knew what he was getting into when he decided not to roll over at the start of the litigation and fight back. “I am not complaining, you have to play to your strengths and Reunert’s is clearly financial”.
The entrepreneur said he had no choice but to liquidate AppChat in the circumstances. “I did not have the resources to fight Reunert legally and run AppChat.”
Holdsworth said that with the company having to close its doors, “the real tragedy is that 15 people (AppChat employees) are out on the street and haven’t found jobs”.
However, Holdsworth told BusinessTech that he has evidence that will provide his company with a reprieve.
“Once I have won this case and I inevitably will, I will re-launch AppChat and South Africa will get the mobile network that it deserves. Reunert’s only prospect of victory is to drag matters out in the hope that I fail to stay the course and run out of money – that won’t happen.”
“In the meantime I will be filing a number of applications in the high court highlighting Reunert’s conduct and seeking relief. I will also be filing a complaint with the Public Protector and the appropriate parliamentary portfolio committees”.
“For now I am in the most brutal of legal fights you can imagine. I will win this, I will restart AppChat,” he said.
In an email to BusinessTech on Monday, Holsdworth elaborated on the reasons why he was forced to close AppChat.
“It is good legal strategy for a large company to out-spend, out-litigate and exhaust the resources of a small company or private individual.
“However this strategy took on a whole new meaning, when I won leave to appeal from the Supreme Court of Appeal. After four successive defeats in the high court, I think they (Reunert) thought I was dead and buried. They panicked having previously indemnified both AppChat and I in the event that my appeal succeeded for any damages as a result of having to cease business”.
“At that point the gloves came off and they crossed a ‘red line’,” Holdsworth said which has led him to lay criminal charges against Reunert and its legal representative.
“It is important for the public to understand that none of this legal stuff has got anything to do with Nashua ECN. Reunert’s primary objective was to stop me from competing against Nashua Mobile their flagship mobile service provider.”
More on AppChat
I was forced into AppChat liquidation: Holdsworth
I have “smoking gun” evidence: Holdsworth
Reunert has committed fraud: Holdsworth
Holdsworth ready to sacrifice all in Reunert battle
AppChat’s Holdsworth: “Cowboys don’t cry”
Holdsworth to appeal AppChat ruling
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