18th Jul 2016 07:47
LONDON (Alliance News) - Cambria Africa shares dropped on Monday after it filed an amended defence and counter-claim against Consilium Corporate Recovery Master Fund Ltd to try to recover USD1.8 million of "substantive losses" incurred by Consilium's legal actions.
Cambria Africa shares were down 13% to 0.5 pence per share on Monday morning.
Consilium had previously called in a USD4.8 million loan that it had provided to Cambria Africa after filing a statutory demand in the Isle of Man, claiming the London-listed company had defaulted on the loan agreement.
Cambria Africa had claimed Consilium was attempting to "accelerate the repayment" of the loans supplied to the company. Notably, the former chief executive and chairman of Cambria Africa are currently both directors of Consilium.
Consilium eventually withdrew its demand in November last year and was then ordered to pay the costs that were incurred by Cambria Africa as a result of the dispute after the High Court of the Isle of Man made a ruling in December.
Consilium then retaliated and launched proceedings in the Commercial Court of the Isle of Man and Cambria Africa had vowed to defend its position and launch a counter-claim.
Cambria Africa repaid the loan in full to Consilium earlier this year on the date that was stipulated in the agreement between the two parties, according to Cambria Africa, but the company did have to get assistance from one of its shareholders as it did not have enough funds to repay the loan in full.
On Monday, Cambria Africa said it has filed a counter-claim against Consilium in the Commercial Court of the Isle of Man for USD1.8 million, based on the "substantive losses suffered by the company as a result of Consilium's actions".
"The company will provide a further update regarding the dispute in due course, as appropriate," said Cambria Africa.
By Joshua Warner; [email protected]; @JoshAlliance
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