Maybe this is where the money went19 Mar 2014 13:06
UPDATE ON SOUTH EAST ASIA SALE LAWSUIT
Avocet Mining PLC (“Avocet†or “the Companyâ€) announces that it has been served with a law suit in the Indonesian courts by PT Lebong Tandai (“PT LTâ€), its former partner in PT Avocet Bolaang Mongondow in Indonesia. The law suit relates to the US$200 million sale of Avocet’s South East Asian assets, which was announced in December 2010, to a private Indonesian company, J Resources Nusantara, an affiliate of J&Partners L.P.. The sale has been substantially completed, with US$197 million of the total consideration received to date.
The basis for the law suit by PT LT is that Avocet allegedly infringed PT LT’s rights by entering into the transaction with J Resources Nusantara. PT LT alleges that Avocet agreed on 26 April 2010 to sell its South East Asian assets to PT LT. In its law suit, PT LT has claimed damages totalling US$1.95 billion, comprising US$450 million loss in respect of an alleged on-sale by PT LT of part of the assets, US$500 million loss in respect of financing arrangements allegedly entered into by PT LT, and US$1 billion for loss of reputation.
Avocet denies that it ever agreed to sell its assets to PT LT. As stated in its press release of 8 March 2011 and subsequently, Avocet is confident that all actions it has taken in respect of the sale of its South East Asian assets were in accordance with prevailing rules and regulations and there are no grounds for this legal action. The Company believes the lawsuit to be baseless and will defend itself vigorously.
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