Wednesday 23rd February 2011 2 Comments
|Text too small?|
Nuplex is to make around $3 million available as compensation for shareholders who bought and retained shares in the company for a period in late 2008 and early 2009, under a settlement reached with the Securities Commission.
Last April, the commission started civil proceedings against Nuplex Industries and six of its present or past directors - John Hirst, Robert Aitken, Barbara Gibson, David Jackson, Bryan Kensington and Michael Wynter.
The commission alleged Nuplex should have announced to the market a forecast and (subsequent) confirmed breach by Nuplex of the senior debt cover ratio covenant in its banking facility agreement as at December 31, 2008.
The commission alleged that was material information and that the failure to announce it to the market was a breach of the continuous disclosure rules in NZSX listing rules and thereby a breach of section 19B of the Securities Markets Act 1988.
The commission also alleged that the defendant-directors were a party to that breach by Nuplex. A statement agreed by the commission and Nuplex, published today, said the parties had reached a full and final settlement of the matters raised in the commission's proceedings.
As part of that settlement, Nuplex would make available $3,054,980.57 as compensation for all shareholders who bought and retained its shares between December 22, 2008 and February 18, 2009. Nuplex would write to all shareholders who bought and retained shares in that period setting out the terms of the compensation offer.
Nuplex acknowledged that, once it was apparent to the company the covenant would be breached, that was material information which should have been disclosed to the market, the statement said. The company also acknowledged it was therefore in breach of the continuous disclosure rules, and in breach of the Securities Markets Act.
Nuplex had agreed to pay $148,127.53 as a contribution to the commission's investigation and court costs. The commission's court proceedings against Nuplex and the directors would be discontinued.
In its own release, Nuplex said it was pleased to have put the long-running dispute behind it.
Nuplex chairman Rob Aitken said a committee of directors not named in the proceedings had concluded it was in shareholders' best interests for the company to settle with the commission, and to do so along lines that benefited shareholders who may have been affected by the company's inadvertent breach of continuous disclosure rules.
Nuplex independent director Peter Springford, who chaired the committee, said the company had weighed up a number of factors including the potential costs of defending all matters raised in the commission's proceedings, and the ongoing distraction to the company and its board and management.
Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive
30th November 2021 Morning Report
Serko Limited (NZX: SKO) Announces Opening of NZ$10 Million Retail Offer
Rua Bioscience Limited (NZX: RUA) Rua to Accelerate Growth with Proposed Acquisition of Zalm
The New Zealand Refining Company Limited (NZX: NZR) Successfully Completes Placement
NZME Limited (NZX: NZM) Acquires BusinessDesk to Supercharge Digital Growth
Cannasouth Limited (NZX: CBD) Acquisition of Outstanding Stake in Cultivation JV Complete