Sundance Resources has vowed to defend a pair of 'bitterly disappointing' lawsuits lodged by family members of the directors who were killed in an African plane crash.
SUNDANCE Resources has vowed to vigorously defend a pair of ''bitterly disappointing'' lawsuits lodged against it by family members of the directors who were killed in an African plane crash.
Revelations that legal action had been started in two countries came on the same day that controversial Chinese group Hanlong was given approval by Australian regulators to push ahead with its takeover of Sundance.
The entire Sundance board - chairman Geoff Wedlock, chief executive Don Lewis, company secretary John Carr-Gregg and non-executive directors Ken Talbot, John Jones and Craig Oliver - were among 11 people who died in June 2010 when a light aircraft crashed in the Republic of Congo.
The plane had been hired by Sundance Resources, as the directors were there to inspect African resources projects.
Wives and family of the dead - excluding the Oliver and Talbot families - have launched legal proceedings in Cameroon, and are expected to begin proceedings soon in the US state of Illinois.
The Cameroon action has been served on Sundance's 90 per cent-owned subsidiary Cam Iron SA, and there are four other respondents including an aviation instrument manufacturer in the US state of Kansas.
The US legal process is expected to be largely the same but is expected to include Sundance Resources as a respondent. Both claims are for unspecified damages.
Sundance chairman George Jones - who came out of retirement to run the company in the wake of the crash - told BusinessDay that several wives of the deceased directors were involved in the claim.
"I personally am bitterly disappointed they are doing this,'' he said. ''The company has made a very substantial payment to the wives, and we do not believe the claim is justified.
"The draft report [of the investigation into the crash] that I've seen indicates that it was pilot error."
The court action is unfortunate timing for Sundance, which recently passed an important agreement with the Cameroon government to push ahead with development of the Mbalam iron ore project.
That project is highly prospective, and has brought Sundance to the attention of foreign investors such as Hanlong.
Approval from Chinese authorities is all that stands between Hanlong and its proposed takeover of Sundance, following yesterday's approval from Australia's Foreign Investment Review Board.
FIRB gave the green light despite recent insider trading accusations being levelled against several Hanlong executives.
Sundance shares finished 2.5? higher at 36?.
Frequently Asked Questions about this Article…
What lawsuits is Sundance Resources facing after the 2010 African plane crash?
Family members of directors killed in the June 2010 crash have launched two legal actions: one served in Cameroon and another expected to start soon in Illinois, USA. The Cameroon claim was served on Sundance’s 90%-owned subsidiary Cam Iron SA and lists several other respondents, while the US action is expected to include Sundance Resources as a respondent. Both claims seek unspecified damages.
Who were the Sundance directors killed in the plane crash and why were they travelling?
The crash in the Republic of Congo killed the entire Sundance board at the time, including Geoff Wedlock (chairman), chief executive Don Lewis, company secretary John Carr-Gregg and non-executive directors Ken Talbot, John Jones and Craig Oliver. They were travelling in a light aircraft hired by Sundance to inspect African resources projects.
How has Sundance Resources responded to the legal claims from the families?
Sundance has vowed to vigorously defend the lawsuits. Chairman George Jones said he was "bitterly disappointed," noted the company had made a substantial payment to the wives of some deceased directors, and said a draft investigation report he’d seen indicated the crash was due to pilot error.
Which Sundance subsidiary was served with the Cameroon legal action and who else is named?
The Cameroon action was served on Cam Iron SA, a Sundance subsidiary that is 90% owned by the company. The claim also names four other respondents, including an aviation instrument manufacturer based in Kansas in the United States.
Will the US legal proceedings differ from the Cameroon claim?
The article says the US legal process is expected to be largely the same as the Cameroon action but is expected to include Sundance Resources itself as a respondent. Both actions seek unspecified damages.
Could these legal actions affect the Mbalam iron ore project or Sundance’s takeover prospects?
The court action is described as unfortunate timing because Sundance recently passed an important agreement with the Cameroon government to advance the Mbalam iron ore project. The project’s prospects have also attracted interest from foreign bidders such as Hanlong, so legal disruption could be a concern for investors.
What is the status of Hanlong’s proposed takeover of Sundance Resources?
Australia’s Foreign Investment Review Board (FIRB) has approved Hanlong’s proposed takeover of Sundance, but approval from Chinese authorities is still required. FIRB gave the green light despite recent insider trading accusations levelled at several Hanlong executives.
How did the market react to the news about the lawsuits and takeover developments?
Despite the legal claims and takeover developments, the article reports that Sundance shares finished higher on the day (around a 2.5% rise), reflecting investor interest connected to the company’s projects and takeover activity.
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