5 Dec 2022 15:19
05 December 2022
Star Phoenix Group Ltd
("Star Phoenix" or the "Company")
TERMINATION OF CONDITIONAL FEE AGREEMENT
Star Phoenix (AIM: STA), an international company with an oilfield services business in Trinidad and an oil and gas interest in Indonesia, announced on 4 June 2021 that the Company reached a conditional fee agreement (the "CFA") with Dentons UK and Middle East LLP ("Dentons") based on a no-win no-fee business model to recover the outstanding sums due from LandOcean through arbitration proceedings against LandOcean in the London Court of International Arbitration ("LCIA"). The Company further announced on 22 August and 18 October 2022 that LCIA issued a consent award in relation to two of the four Stage 1 Claims in which LandOcean is required to make payment of US$301,265 to Star Phoenix, and a partial payment of US$130,000 has been received in a trust account set up by Dentons. Regrettably, on 2 December 2022, the Company received a notice letter written by Dentons to terminate the CFA with immediate effect, citing mainly a broken-down relationship of trust between the two parties.
The Company does not agree with the assertions in relation to the termination of CFA. The Company will endeavor to minimize the cost impact by sourcing a new legal representative based on a cost effective basis. The Company takes the matter very seriously and will review possible remedies for any damage on company reputation and /or financial loss from inaction of CFA.
The Company will provide a further update to the shareholders upon further material developments. This announcement has been approved by Chairman Lubing Liu on behalf of the Company.
Contact Details
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Star Phoenix Group Ltd Robin Luo (Company Secretary) e. admin@starphoenixgroup.com t. +61 8 6205 3012 | WH Ireland Limited (Nominated Adviser and Broker) James Joyce / Enzo Aliaj t. +44 (0)20 7220 1666 |
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.