Cosalt PLC Update on Court Case (2556N)
27 September 2012 - 4:00PM
UK Regulatory
TIDMCSLT
RNS Number : 2556N
Cosalt PLC
27 September 2012
Cosalt plc
("Cosalt" or the "Company")
Update on Melville Court Case
On 20 October 2010, the Company announced that an inventory
check had revealed evidence of an unexpected stock shortfall in its
Aberdeen based Offshore division and further investigation revealed
a series of doubtful transactions involving a company, called
Meapac Limited, which evidence suggests accounted for a substantial
proportion of the shortfall.
Subsequently, the Company has pursued a claim through the
Scottish Courts against Calum Melville and Stuart Melville
(previous employees of the Group) and companies associated with
them for losses suffered by the Group as a consequence of an
alleged fraud. Of all the money paid to Meapac as an alleged
"supplier" 95% found its way almost immediately into Calum
Melville's bank account or the bank account of companies directly
controlled by him.
The trial commenced on 25(th) September and has been adjourned
until 2 October. Meantime, the Court granted a decree in favour of
GTC Group (a wholly owned subsidiary of Cosalt) against Meapac in
the sum of GBP2.5m plus interest and expenses.
Shortly before trial, the Company was approached by
representatives of Calum and Stuart Melville with an offer to
settle in advance of the court case being heard in public. While
the Company has rejected all previous offers to settle, it has
agreed in principle to accept the latest offer and heads of terms
have been signed.
Assuming a formal settlement is concluded, the case will be put
on hold from Tuesday 2 October 2012 to allow implementation of the
settlement. The terms which Calum Melville and Stuart Melville and
their associated companies have agreed will also be disclosed on
that date.
Enquiries:
Cosalt plc Tel: +44 (0) 1472 725560
Trevor Sands, Chief Executive
Officer
Cardew Group Tel: +44 (0) 207 930 0777
Tim Robertson
This information is provided by RNS
The company news service from the London Stock Exchange
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