2nd Mar 2016 15:52
LONDON (Alliance News) - Cambria Africa PLC shares rose on Wednesday after it said it is considering the proposed suspension of the ongoing litigation between the company and its lender, clarifying it has not agreed terms.
Cambria Africa shares were trading up 27.5% to 0.510 pence per share on Wednesday afternoon.
Cambria Africa released a statement earlier this week that said it had agreed the ongoing litigation being stayed, or suspended, until the end of April, but on Wednesday said it is only considering the terms.
The litigation arose from a dispute with one of its creditors, Consilium Corporate Recovery Master Fund Ltd, which has offered the suspension to the company.
Back in September, Cambria Africa said it "strongly disputes" claims made by Consilium that the company was due to repay a substantial loan, with Cambria Africa accusing Consilium of trying to "accelerate the repayment of the loans".
Consilium issued Cambria Africa with a statutory demand in the Isle of Man for the repayment of USD4.8 million pursuant to the terms under the loan agreement between the two companies.
The figure demanded by Consilium Corporate Recovery is the same as the USD4.8 million secured by Cambria Africa back in September from Lonrho Ltd earlier in 2015 after a court case between the two companies. Cambria Africa was originally seeking USD10.0 million from Lonrho.
In another blow to shareholders, Consilium then converted its floating charge on Cambria's assets, including its primary bank accounts and the USD4.8 million settlement from Lonrho as part of the dispute.
That meant Cambria Africa became reliant on the USD1.1 million standby facility made available by Ventures Africa Ltd to the company so it could be used as security for costs in relation to its now settled litigation against Lonrho.
The litigation with Lonrho came after Cambria Africa was accused of unlawfully transferred payments by Lonrho to one of its subsidiaries whilst it was managing Cambria in 2008, and over the three aircraft leases.
Cambria continues to diligently investigate all the claims it may have against Consilium and the former CEO and Chairman of Cambria, which are both directors of Consilium.
On another note, Cambria Africa Wednesday said current Chief Financial Officer Josie Watenphul will no longer carry out her financial management duties, and will become a non-executive director only, as the company begins its search for a new CFO.
By Joshua Warner; [email protected]; @JoshAlliance
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