The future of ATC Group is hanging in the balance. The latest woe was the Group's suspension from AIM on June 24, pending clarification of the company's financial position. The AIM suspension coincided with news of a possible claim from Nimans under the warranties in the sale and purchase agreement relating to the disposal of Rocom.

There was also notice of a proposed purchase price adjustment under the completion accounts mechanism in the sale and purchase agreement.

On March 24 this year Nimans acquired rival Rocom for £12.45m from the ATC Group, but new developments suggest a complication in the terms of the deal. ATC Group stated that it is seeking advice as to the ‘merits' of the warranty claim and the proposed completion accounts adjustment, which in aggregate amount to £3.62m.

To make matters worse, ATC Group suffered another blow early last month when a substantial proportion of a project, scheduled for completion in this financial year, was stalled, meaning that the company would not receive cash from this major customer on the time schedule originally expected. According to ATC this project generated a turnover of approximately £6m, which was accrued last year based on work done up to 31 December 2008 and would have provided significant cash for debt reduction during the course of the current financial year.

Enda Kenneally, Mitel's UK Sales Director, commented: "We've be in touch with the directors and on the basis of the information that's available they're dealing with the warranty claims from Nimans in the accepted way. It's not untypical to take these kinds of actions when faced with the problems ATC have. Our relationship with ATC is still strong. It is still placing orders for new business, we're still accepting them, and they're still paying. The challenge for ATC Group is that there's a lot of speculation in the channel now."

Campbell Williams, a former Marketing chief at ATC Group, now Marketing Director at reseller Charterhouse Voice & Data, added: "I'm sure the business units will be acquired. They're all still profitable with solid revenues, but cash remains king, and it looks like they've run out."