CG Reply ..... Sep 8th re BellP10 Sep 2017 15:22
Thank you for your email below, I have now taken the opportunity to look into this further.
You will note from recent news that BP is expected to be placed into administration, imminently. As such, a moratorium will be put in place that prohibits any legal action being taken. In addition, due to recent adverse publicity, were there to be a sale of BP’s business and/or assets, we would expect that this would be at a significant discount. I believe that we will know more about this over the coming days, as the position crystalizes.
As you will be aware, in order to pursue such litigation, there will be significant costs involved. For that reason, we have held preliminary conversations with contacts in the legal funding industry: although it appears that there is no litigation currently being brought in this area, that does not mean that actions may not be brought in the future. (However, we are likely to be required to provide concrete evidence that BP’s actions created demonstrable and measurable negative effects on the Company).
As you are aware, at present, the Company has no physical assets and the Joint Administrators are waiting for any potential realisations to flow from the future sale of Lace Diamond Mine, which is currently under business rescue procedures within South Africa. The quantum and timing of any future realisations remain uncertain at present.
For all the reasons stated above, we do not believe that there will be any commercial benefit in pursuing legal action, at present.
Please let me know, should you have any questions regarding the above.
Yours sincerely
For and on behalf of the Company
Becky Withington
For S Cork
Joint Administrator