(Alliance News) - Polo Resources Ltd on Monday said it has has trouble recovering a USD4.2 million loan made to Plinian Guernsey Ltd and intends to impair it.
Shares in Polo were down 3.2% at 3.00 pence in London in early afternoon trading.
The investment company, which has interest in oil, coal, copper, gold, and other resources, said it was notified that Plinian Guerney's sole shareholder had placed the company into liquidation.
Polo was then asked to provide proof of debt owed, whereupon it was informed that Plinian Guerney has transferred its assets to owner Plinian Capital Ltd. Polo expects that the transferred assets "may otherwise have been used to repay sums outstanding under agreements with Polo".
Polo noted that Plinian Guernsey and Plinian Capital are "both controlled by Bradford A Mills".
"In the interest of prudence", Polo has decided to fully impair the USD4.2 million loan.
"While Polo views the actions of Plinian as an intentional manoeuvre to evade liability, the door remains open to negotiating a settlement pending the preparation to commence court proceedings against Plinian Guernsey and its principals to pursue the recovery of the outstanding sums on behalf of its shareholders," said Polo.