Kupang Resources, ILP enter settlement deed

By Ruli Setiawan

ASX-listed Kupang Resources Ltd announced that it has entered into a settlement deed with International Litigation Partners Pte Limited (ILP)

The statement said that the parties have agreed to fully and finally settle all proceedings between them.

Following execution of the Settlement Deed, the company has requested that trading in its securities be resumed with effect from today, 9 November 2012.

Kupang Chairman, Ben Elias, said that ?agreeing to terms with ILP finally allows the company to move away from the courts and into the field. We?ll continue to enforce judgement secured against Grimaldi, but we can truly say now that our focus is exploration and mining?.

Of the execution of the Settlement Deed between the parties, ILP director, Peter Wright, said, ?We are pleased to have reached an agreement with Kupang.?

As announced on 5 October 2012 , the High Court of Australia delivered its decision in respect of the proceedings between the Company and ILP allowing ILP?s appeal (HCA Proceedings).

In the HCA Proceedings the High Court found that ILP was entitled to payment of an early termination fee pursuant to the funding agreement between the Company and ILP which was rescinded by the company. As a result, ILP is entitled to the early termination fee of AU$8,381,144.30 plus interest and costs.

As announced on 22 February 201, the Company was successful in the, Federal Court appeal proceedings against Phillip Grimaldi.

Grimaldi subsequently made an application for special leave to appeal to the High Court of Australia pursuant to which he sought leave to appeal from the findings of the Full Federal Court confirming the trial judgment that he was a director, a de facto director or officer of the Company and on that basis was not required to account to the Company for any profits obtained by him as a result of serious breaches of fiduciary duty.

The High Court of Australia refused the Special Leave Application and Grimaldi was ordered to pay the Company?s costs of the application. There is no further right of appeal available to Mr Grimaldi. The Company is seeking recovery of its costs in relation to Mr Grimaldi?s unsuccessful Special Leave Application (expected to be in the order of $30,000) and its further costs of the Full Court appeal and the trial proceedings.

Editing by Adianto P. Simamora