VoIP company Freshtel Holdings (ASX:FRE) has sold its UK operations to an unnamed party for $150,000.
Freshtel said the business had been operating at a significant loss, and would have been forced to close down had it not been disposed.
The sale requires formal shareholder approval, but major shareholders Tesco, UBS and Custodial Capital have already given their blessing.
The company added that a dispute with Newport Capital over a rights issue announcement had been resolved. While the terms are confidential, Freshtel said it would experience no material impact from the settlement.