27 Sep 2012 07:00
Cosalt plc
("Cosalt" or the "Company")
Update on Melville Court Case
On 20 October 2010, the Company announced that an inventory check had revealed evidence of an unexpected stock shortfall in its Aberdeen based Offshore division and further investigation revealed a series of doubtful transactions involving a company, called Meapac Limited, which evidence suggests accounted for a substantial proportion of the shortfall.
Subsequently, the Company has pursued a claim through the Scottish Courts against Calum Melville and Stuart Melville (previous employees of the Group) and companies associated with them for losses suffered by the Group as a consequence of an alleged fraud. Of all the money paid to Meapac as an alleged "supplier" 95% found its way almost immediately into Calum Melville's bank account or the bank account of companies directly controlled by him.
The trial commenced on 25th September and has been adjourned until 2 October. Meantime, the Court granted a decree in favour of GTC Group (a wholly owned subsidiary of Cosalt) against Meapac in the sum of £2.5m plus interest and expenses.
Shortly before trial, the Company was approached by representatives of Calum and Stuart Melville with an offer to settle in advance of the court case being heard in public. While the Company has rejected all previous offers to settle, it has agreed in principle to accept the latest offer and heads of terms have been signed.
Assuming a formal settlement is concluded, the case will be put on hold from Tuesday 2 October 2012 to allow implementation of the settlement. The terms which Calum Melville and Stuart Melville and their associated companies have agreed will also be disclosed on that date.
Enquiries:
Cosalt plc Trevor Sands, Chief Executive Officer | Tel: +44 (0) 1472 725560 |
Cardew Group Tel: +44 (0) 207 930 0777
Tim Robertson