SAI, King in dispute over $1.75 million
ARLINGTON HEIGHTS, Ill.-A $1.75 million note receivable issued by Security Associates International during merger talks between that company, King-Monital and SecurityVillage last spring is the subject of a dispute between King, now Criticom, and Security Associates.
The note was in connection with Security Associates' purchase of assets of Security Village in conjunction with the three-way merger, which would have combined two of the three largest wholesale monitoring companies and a technology startup.
Neither side would comment further on the issue, but a press release issued by Security Associates stated that KC Acquisition Corp. and Monitoring Acquisition Corp., both part of King-Monital, had not met a due date on the note of Dec. 31, 2001.
Because of the failed merger, KC Acquisition "has made claims relating to the termination of the proposed mergersome of which KC Acquisition Corp. believes nullify the note receivable," the release stated. Security Associates, however, said that it considered all terms of the failed merger settled and that the note is a valid obligation. The company will "vigorously pursue collection" of the note, it said.
The note is now a civil matter in the U.S. District Court in New Jersey.