Malta-based B2B technology provider River Tech has reportedly laid off around 30 employees after a French court ordered the freezing of a subsidiary’s bank account, significantly disrupting the company’s operations. According to reports, some staff claim they have not yet received their final wages.
The firm, which is based in St Julian’s, has confirmed that they served redundancy notices to employees across all their companies; including the company’s senior leadership team, CEO and CFO. An investigative judge at the Paris Court ordered the company’s operational bank account (total up to €51.2 million) be frozen on March 13th.
On March 20th, River Tech’s subsidiary, upon approval by the board of directors, voted to wind-up and dissolve the corporation as per Maltese law. According to River Tech, the freezing of the account has materially impeded its subsidiary from fulfilling its financial obligations.
River Tech’s board of directors passed a resolution similar to that of the subsidiary in respect to the parent entity and filed an action in Maltese court to wind-up and dissolve its parent company.
Once appointed, the liquidator of the parent company and subsidiary will determine creditor payments using the appropriate priority as per law in the order of payment and also manage the winding up process. Furthermore, the company requested the appointment of a provisional administrator who would assume an interim management role until the final determination of the case is made.
River Tech indicated that the freezing of its accounts is related to an issue raised by France’s Central Racing and Gaming Service (a department of the National Police) and further indicated that the issue relates to a criminal investigation of one of River Tech’s former customers.
