14th Jul 2014 06:59
LONDON (Alliance News) - Cambria Africa PLC Monday said it is seeking to rescind a USD2.7 million settlement it received from Lonrho Ltd last year and re-launch legal proceedings for total claims of USD10 million, over what Cambria called mismanagement and fraudulent representation.
The southern Africa-focused investment company achieved final settlement of USD2.7 million from Lonrho in July 2013 relating to various claims over loan assets and alleged mismanaged contracts. However, at the time, claims by Cambria against Lonrho regarding three leases of aircraft to previous Lonrho subsidiaries were excluded from the settlement.
On Monday, Cambria said it is now seeking to rescind the settlement and make further claims of mismanagement against Lonrho in court.
The new claims are over payments which are alleged by Cambria to have been unlawfully transferred by Lonrho to one of its subsidiaries whilst it was managing Cambria in 2008, and over the three aircraft leases.
Cambria is claiming USD8.8 million over the aircraft leases, believing that there was fraudulent misrepresentations in one of the contract purchase deals and certain breaches of contract, including unpaid maintenance and other negligent acts.
The company said it is in discussions with its advisers over the situation and is continuing to make further investigations into other possible instances of mismanagement by Lonrho.
Lonrho, which has interests in African agriculture and hotels, left the London market last year after agreeing to a GBP175 million takeover by multi-millionaire Swiss investors Rainer-Marc Frey and Thomas Schmidheiny.
By Tom McIvor; [email protected]; @TomMcIvor1
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