Karran is pursuing Stillman to recover over 100,000 for breach of warranty over his original disposal of Swan in September 2000.
Swan Innovations has also started an action against Stillman to recover 35,000 plus interest. Stillman strongly opposes the allegations.
"We are pursuing these actions very strongly as we have been told by our legal team that we have a very strong case," said Karran Group managing director Sue Whitmore.
A meeting of creditors for small businesses and former employees is being held today (8 March) at the Queen Elizabeth Hotel in Corby. Swan Innovations called in the liquidators in January with debts of over 1m.
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