The disputed payments relate to a project completed in February for a US-multinational that has a final account claim in dispute due to Covid-related overruns on Sonica’s subcontractors.
“Unfortunately, due to the knock-on effects of Covid on our international supply partners we have been unexpectedly faced with a large, disputed payment. This issue, which is the subject of litigation in Germany, coupled with recent large-scale investment in the business and Covid impacts have left the cashflow position of the company significantly eroded,” a spokesman for the company said.
“The company has taken appropriate decisions and actions to ensure the continued sustainability and future growth of the organisation and subject to court approval, we believe that Sonica’s current cash position, strong project pipeline and projections will allow Sonica to exit this process swiftly and continue its strong growth journey.”