Metalnrg Plc Regulatory News (MNRG)

27 February 2023

MetalNRG plc

Update on Legal Processes and timing

MetalNRG plc ("MetalNRG" or the "Company") provides an update on the various legal cases it is involved in, and the expected timing associated with the cases.

The Company's claim for (i) the return of the £1.02million it paid and (ii) damages from Mr Rocco for breach of director's duties has already been successful by way of summary judgment on the first point, with judgment given for the £1.02 million. The corporate defendants have paid the Company c.£450k, and the remainder has been paid into Court, pending the resolution of Mr Rocco's application for permission to appeal (which has been denied once on the papers). 

The case proceeds on the director's duties claim in which the Company seeks damages from the previous incumbent Director (Mr Rocco). The oral permission to appeal application will be heard for a half day between 15 and 17 March. While a case management and cost hearing was held on 8 February to set a timetable for the remainder of the claims, this was adjourned on Mr Rocco's application on a technical matter, and whilst a new date is now set for this case on 6 July 2023, the Company is trying to find an earlier date, the Court schedule permitting.

As to the s994 Prejudice Petition brought by the former Director, Mr Rocco, against the Company and Directors personally, Mr Rocco withdrew the claim in December 2022, accepting to pay the Company and the Directors their legal costs incurred to date. Mr Rocco has paid £20,000 on account, but has failed to engage in negotiation on the final amount, requiring detailed assessment proceedings to be commenced for the remainder by the Company and the Directors.

Mr Rocco filed a claim in Scotland under his employment agreement to be indemnified for his legal costs by the Company. The defendant lost the claim at first instance and was ordered to pay legal costs to the Company.  The defendant appealed, the appeal was heard in December 2022, and we now await judgement which should be forthcoming within the next few weeks.

Mr Rocco has also taken the Company to the Employment Tribunal in Scotland. The case is on hold until the resolution of the proceedings in the English High Court, for damages from Mr Rocco for breach of director's duties.

Rolf Gerritsen commented "while the legal process takes time, the Company has now won in Scotland, in England and the former Director has withdrawn his latest petition. We now await to complete the various appeal processes, but are confident of the final outcome of the legal processes. We are doing everything we can to complete the legal process in the shortest possible time, but we recognise that the Courts have a serious backlog of cases to address".

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