MetalNRG launches enforcement proceedings against BritEnergy and BritNRG
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MetalNRG starts enforcement proceedings against BritEnergy and BritNRG for alleged underpayment after court ruling
- MetalNRG shares have plunged about 71% since the start of the year
- The London-based company initially launched legal action in January
- Major investments include the Gold Ridge project in Arizona, USA
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Natural resource investor MetalNRG has launched an enforcement action against two associated companies, alleging that they had not paid them the money owed.
The London-based company initially launched legal action in January against BritEnergy and its CEO, Pierpaolo Rocco, over its stake in the BritNRG joint venture.
MetalNRG planned to increase its stake in the company, which buys up oil and gas assets in the UK, to 50 percent last year, making a series of payments worth just over £1 million to BritEnergy.
MetalNRG initially launched legal action in January against BritEnergy Holdings LLP and its chief executive, Pierpaolo Rocco, over a case involving its stake in the BritNRG joint venture.
But after discovering that Mr Rocco had failed to declare a significant stake in BritEnergy, the company revoked the deal due to lack of investor approval and sought legal redress.
Towards the end of September, a lawsuit was filed in favor of the company that required the joint venture and LLP to repay MetalNRG, plus interest and costs, and reject their leave to appeal and stay of execution.
The two sides then had until 4pm on 26 October to pay MetalNRG £1.2 million, but only handed over around £250,000 before that deadline passed. Another sum totaling over £306,000 has since been paid.
MetalNRG told investors Monday that BritEnergy and BritNRG had written to their lawyers “claiming to have paid the balance they believe was owed to the company pending an appeal against part of the judgment”.
It added that the group “appeared to grant itself a unilateral stay of execution despite such a stay being requested at the hearing and denied by the Court, and a further stay request pending in the Court of Appeal.”
It added: “It is clear that such action is directly contrary to the order of the High Court and the Company has accordingly commenced enforcement proceedings against the defendants by issuing and serving legal requirements for the balance owed.”
MetalNRG shares were 6.9 percent lower at 0.07 pence late Monday afternoon, meaning their value is down about 71 percent since the start of the year.
Based in London, the company has five major investments ranging from a uranium deposit in Kyrgyzstan to a gold mining project in Lake Victoria, Tanzania, and the Gold Ridge project in Arizona, US.
In its most recent financial results covering the first six months of 2022, the group posted a loss of £1 million, of which approximately £630,000 related to legal and professional costs incurred in the BritNRG case.
During that period, the company also entered into a new partnership agreement with EQTEC, a clean technology provider, with the aim of recommissioning a 1MW biomass-to-energy plant in Italy.
When in operation, this installation will convert straw and forest wood waste from local forests and farms into green electricity and heat.