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- Bathurst Resources’ (BRL) share price has spiked after the New Zealand Supreme Court upheld its appeal against a case brought by L&M Coal Holdings
- The Supreme Court found a US$40 million payment owed to L&M Coal Holdings would be “indefinitely deferred.”
- The court ruled Bathurst could rely on the original Royalty Deed underpinning the agreement
- Bathurst says it welcomes this decision, which marks the end of a five-year stoush between the two companies
- Bathurst Resources shares were up 67.4 per cent and trading at 72 cents at 1:27 pm AEST
Bathurst Resources’ (BRL) share price has spiked after the New Zealand Supreme Court upheld its appeal against a case brought by L&M Coal Holdings.
Bathurst lost the initial case against L&M Coal Holdings back in 2018, when the High Court found BRL liable for a US$40 million (A$53 million) performance payment over disagreements about coal production and shipping technicalities.
L&M Coal Holdings also pushed for a second US$40 million (A$53 million payment in 2020.
Today’s decision effectively sets aside this High Court decision and Court of Appeal’s previous decision, and the payment has been “indefinitely deferred”.
The court ruled Bathurst could rely on the Royalty Deed forming part of the
the original agreement, allowing the payment to be deferred provided the relevant royalty continues to be paid – even if that sum is zero.
In addition, L&M Coal Holdings is expected to reimburse Bathurst’s Supreme Court legal costs alongside previous costs re-determined in the High Court and Court of Appeal.
Bathurst said it welcomed this decision, which marks the end of a five-year stoush between the two companies.
Bathurst Resources shares were up 67.4 per cent and trading at 72 cents at 1:27 pm AEST.
