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How come there's still so many buyers?
Waiting for e dead fish to start swimming again?
One bad news after another... Let's hope it can pull through
Yesterday's Announcement....
SGX RELEASE
For Immediate Release
Company Registration Number 200413014R
36 Tuas Road, Singapore 638505
Singapore and Australia
25 June 2013
Legal Proceedings commenced against Karara Mining
Limited.
The Board of Directors (“Board”) of AusGroup Limited (“Company”) announces that its wholly-owned
subsidiary AGC Industries Pty Ltd (“AGC”) has today issued a Writ of Summons against Karara Mining Limited
(a company incorporated in Perth, Western Australia) (“KML”) in the Supreme Court of Western Australia.
AGC’s Writ is in respect of KML’s failure to process, certify and make progress payments amounting in
aggregate to approximately AU$43.5 million (the “Progress Payments”) and for a failure by KML to recognise
additional corporate overhead and profit of AU$11.2 million which was a performance incentive to achieve
certain milestone dates (the “COP Payment”) for structural, mechanical and piping installation works carried out
by AGC, at KML’s Karara Iron Ore Project in Western Australia, pursuant to a 2012 contract entered into
between AGC and KML (“Contract”).
It is AGC’s firm view that the Progress Payments and COP Payment claim are valid under the Contract
particularly given that subsequent to our announcement on 3 May 2013, AGC wrote to KML once again on 7
May 2013, requesting that in accordance with the Contract KML provide a written, substantiated and competent
claim given that the threat of a claim by KML had been used as a reason for withholding payment since March
2013. Despite that request, and previous demands by AGC, KML has failed to comply with that request. In the
circumstances, AGC has no option but to commence legal proceedings.
In addition to the Writ, AGC yesterday applied for, and was granted, an interim injunction to restrain KML from
converting to cash a performance security bank guarantee in the amount of $AU8.8 million until further order of
the Court.
AGC has obtained an additional short term working capital facility of $AU9.2 million from its financiers.
AusGroup Managing Director and CEO, Laurie Barlow, said: “AGC has not taken this action lightly, however in
the interests of our shareholders and other stakeholders, we believe this is a necessary step.
AGC is confident that it has fulfilled its obligations under the Contract and firmly believes it is fully entitled to the
Progress Payments and COP Payment from KML for the services provided and which can be supported when
the matter proceeds to a hearing and formal decision.”
Shareholders of the Company (“Shareholders”) are advised to exercise caution in trading their shares
in the Company and the Company will make the necessary announcements when there are any material
updates on the above matter. The matter is on-going and Shareholders are advised to read all further
announcements by the Company carefully and to consult their stock brokers, bank managers, solicitors
or other professional advisors if they have any doubt about the action(s) they should take.
By Order of the Board
Laurie Barlow
CEO and Managing Director
Ends
Previous Announcement.....
SGX RELEASE
For Immediate Release
Company Registration Number 200413014R
36 Tuas Road, Singapore 638505
Singapore and Australia
3 May 2013
Material Event Announcement
The Board of Directors (“Board”) of AusGroup Limited (“Company”) wishes to announce that Karara
Mining Limited (a company incorporated in Perth, Western Australia) (“KML”) has withheld progress
payments amounting in aggregate to approximately AU$21.7 million (the “Progress Payments”) for
structural, mechanical and piping installation works carried out by the Company’s wholly-owned
subsidiary, AGC Industries Pty Ltd (“AGC”) at KML’s Karara Iron Ore Project in Western Australia
pursuant to a 2012 contract entered into between AGC and KML (“Contract”).
Further, KML has provided notice to AGC that KML intends to call on the performance security
(“Security”) in the amount of AU$8.8 million in the form of bank guarantees issued by financial
institutions, which Security was furnished to KML pursuant to the terms of the Contract.
Based on legal advice of AGC’s lawyers, it is AGC’s firm view that the Progress Payments are validly
due under the Contract and that KML has not provided a substantiated basis for refusing payment
and its intended call on the Security.
AGC has also received notification from KML of a claim being prepared against AGC for an unfinalised value. The notification of claim has not been given in accordance with the Contract and KML
has not provided any formal substantiation of either the breaches it relies upon or basis for calling on
the performance guarantees or withholding the progress payments. Furthermore, in the 13 months
AGC has performed this contract, KML have not issued any formal show cause notice under the
contract.
AGC is actively liaising with KML management to attempt to resolve the current situation either
through formal dispute resolution under the contract, or mediation outside the contract.
AGC is keeping its bankers informed of these events which may trigger a review event under the
company’s banking arrangements.
Shareholders of the Company (“Shareholders”) are advised to exercise caution in trading their
shares in the Company and the Company will make the necessary announcements when there
are any material updates on the above matter. The matter is on-going and Shareholders are
advised to read all further announcements by the Company carefully and to consult their stock
brokers, bank managers, solicitors or other professional advisors if they have any doubt about
the action(s) they should take.
By Order of the Board
Laurie Barlow
CEO and Managing Director
Ends
Litigation incurs money and court case can be long drawn.
CHINHWEE ( Date: 26-Jun-2013 10:12) Posted:
|
Plunging.
AusGroup chief executive Laurie Barlow. Picture: Sharon Smith/The West Australian.
Contractor AusGroup says it has launched legal action against Karara Mining over about $55 million in withheld payments for work performed on the magnetite project in the State's Mid-West.
AusGroup alleges Karara has failed to make progress payments to its wholly-owned subsidiary AGC Industries amounting to $43.5 million and performance incentives amounting to $11.2 million.
The work relates to structural, mechanical and piping installation at the magnetite project.
AusGroup claims the payments have been overdue since March and withheld despite several demands.
In addition to a WA Supreme Court writ, AGC yesterday applied for, and was granted, an interim injunction to restrain Karara from converting to cash a performance security bank guarantee of $8.8 million until further order of the court.
AGC said it had secured an additional short term working capital facility of $9.2 million from its financiers.
AusGroup managing director and chief executive Laurie Barlow said the company had not taken the legal action lightly.
" However in the interests of our shareholders and other stakeholders, we believe this is a necessary step," he said.
AGC said it was confident that it had fulfilled its obligations under the contract and firmly believed it was fully entitled to the payments.
Karara Mining, and the Karara magnetite project, is a joint venture between Gindalbie Metals and China's Ansteel.
Gindalbie Metals shares closed flat at 11.5 cents. AusGroup is listed on the Singapore Exchange.
Drop now
Waiting as well...
Not bad news, thx.
30cents should be on the way very soon.
Trade halt lifted...
Does it mean will drop cos earnings not realized?
SGX RELEASE
For Immediate Release
Company Registration Number 200413014R
36 Tuas Road, Singapore 638505
Singapore and Australia
25 June 2013
Legal Proceedings commenced against Karara Mining
Limited.
The Board of Directors (“Board”) of AusGroup Limited (“Company”) announces that its wholly-owned
subsidiary AGC Industries Pty Ltd (“AGC”) has today issued a Writ of Summons against Karara Mining Limited
(a company incorporated in Perth, Western Australia) (“KML”) in the Supreme Court of Western Australia.
AGC’s Writ is in respect of KML’s failure to process, certify and make progress payments amounting in
aggregate to approximately AU$43.5 million (the “Progress Payments”) and for a failure by KML to recognise
additional corporate overhead and profit of AU$11.2 million which was a performance incentive to achieve
certain milestone dates (the “COP Payment”) for structural, mechanical and piping installation works carried out
by AGC, at KML’s Karara Iron Ore Project in Western Australia, pursuant to a 2012 contract entered into
between AGC and KML (“Contract”).
It is AGC’s firm view that the Progress Payments and COP Payment claim are valid under the Contract
particularly given that subsequent to our announcement on 3 May 2013, AGC wrote to KML once again on 7
May 2013, requesting that in accordance with the Contract KML provide a written, substantiated and competent
claim given that the threat of a claim by KML had been used as a reason for withholding payment since March
2013. Despite that request, and previous demands by AGC, KML has failed to comply with that request. In the
circumstances, AGC has no option but to commence legal proceedings.
In addition to the Writ, AGC yesterday applied for, and was granted, an interim injunction to restrain KML from
converting to cash a performance security bank guarantee in the amount of $AU8.8 million until further order of
the Court.
AGC has obtained an additional short term working capital facility of $AU9.2 million from its financiers.
AusGroup Managing Director and CEO, Laurie Barlow, said: “AGC has not taken this action lightly, however in
the interests of our shareholders and other stakeholders, we believe this is a necessary step.
AGC is confident that it has fulfilled its obligations under the Contract and firmly believes it is fully entitled to the
Progress Payments and COP Payment from KML for the services provided and which can be supported when
the matter proceeds to a hearing and formal decision.”
Shareholders of the Company (“Shareholders”) are advised to exercise caution in trading their shares
in the Company and the Company will make the necessary announcements when there are any material
updates on the above matter. The matter is on-going and Shareholders are advised to read all further
announcements by the Company carefully and to consult their stock brokers, bank managers, solicitors
or other professional advisors if they have any doubt about the action(s) they should take.
By Order of the Board
Laurie Barlow
CEO and Managing Director
Ends
Bad news. go down. can buy cheap
AusGroup halts share trading on law suit against customer
By
AUSGROUP Limited requested for a halt in the trading of its shares on Tuesday.
The company, which provides fabricators for oil & gas and mining structures in Australia, said the request was made due to " legal proceedings against a customer" .
It last traded at 38 cents a share.
No details were provided. However, in May, AusGroup said Karara Mining refused to pay about A$21.7 million in payments to its subsidiary AGC Industries. The money was for engineering and plumbing work carried out at the site.
Will it get shot down again??? =(
Trading Halt.
LEGAL PROCEEDINGS AGAINST A CUSTOMER
Me! But quite sian already.. =s
Anyone still vested in this?
Augroup. Which direction is it going. South or North?
This is my personal view and analysis on the Ausgroup based on Technical Analysis only.
1. A reversal pattern of Head and Shoulder was formed in the beginning of May this year. A target of mnimum of 30cents was arrived based on the calculation on the pattern characteristics.
2. A final gap down has yet to be occurred till now. I guess this gap will probably bring Ausgroup down to around 30cents. This is based on the classic textbook theory of law.
3. Of course, the chance is 80% to materialise and there is another 20% of which can negate the action of the above movements. If it does, then the pattern/gapping of law failed in this instance.