Swart unable to comment because of interdict that prevents him from talking about various aspects of Wescoal matter
Aug05, 2011
By Allan Seccombe
WESCOAL Holdings has had legal papers drawn up to sue Sutha Civils for damages the coal mining company suffered during a battle between the two groups stemming from a dispute over a payment of R15m, Wescoal CEO Andre Bojé said yesterday.
JSE-listed Wescoal won an application in court to overturn a liquidation application brought against its subsidiary Wescoal Mining by Sutha and the listed coal producer was awarded a "punitive costs order" against Sutha, he said.
Wescoal yesterday ended 3c lower at 72c on the JSE.
The matter flared up in a public brawl in March when Sutha levelled allegations against Wescoal that were strongly denied by Mr Bojé.
Sutha claimed that it was owed R15m by Wescoal. It was these allegations that drove down Wescoal’s share price and it is on this basis that Wescoal is preparing legal action against Sutha, its CEO Nico Swart and Sutha consultant Wimpie Badenhorst.
"These court orders bring to an end the madness of the Sutha matter and Wescoal will be pursuing a substantial damages claim against Sutha, Mr Swart and Mr Badenhorst for their destruction of value and the harm they have brought on Wescoal and its shareholders," Mr Bojé said.
During the process to obtain an interdict against Sutha to prevent it from making further public pronouncements against Wescoal the court suggested the listed company seek damages against Sutha, he said.
"The punitive costs order is a clear indication that the court has a dim view of their approach and reinforces the judgment handed down in the South Gauteng High Court last week that the Sutha actions were malicious, groundless, unsubstantiated and devoid of truth," said Mr Bojé.
Mr Swart said he was unable to comment because of an interdict granted to Wescoal to prevent him from talking about various aspects of Wescoal.
(sourced Business Day)
JSE-listed Wescoal won an application in court to overturn a liquidation application brought against its subsidiary Wescoal Mining by Sutha and the listed coal producer was awarded a "punitive costs order" against Sutha, he said.
Wescoal yesterday ended 3c lower at 72c on the JSE.
The matter flared up in a public brawl in March when Sutha levelled allegations against Wescoal that were strongly denied by Mr Bojé.
Sutha claimed that it was owed R15m by Wescoal. It was these allegations that drove down Wescoal’s share price and it is on this basis that Wescoal is preparing legal action against Sutha, its CEO Nico Swart and Sutha consultant Wimpie Badenhorst.
"These court orders bring to an end the madness of the Sutha matter and Wescoal will be pursuing a substantial damages claim against Sutha, Mr Swart and Mr Badenhorst for their destruction of value and the harm they have brought on Wescoal and its shareholders," Mr Bojé said.
During the process to obtain an interdict against Sutha to prevent it from making further public pronouncements against Wescoal the court suggested the listed company seek damages against Sutha, he said.
"The punitive costs order is a clear indication that the court has a dim view of their approach and reinforces the judgment handed down in the South Gauteng High Court last week that the Sutha actions were malicious, groundless, unsubstantiated and devoid of truth," said Mr Bojé.
Mr Swart said he was unable to comment because of an interdict granted to Wescoal to prevent him from talking about various aspects of Wescoal.
(sourced Business Day)
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