- Coal mining company Bathurst Resources (BRL) has welcomed a judgement released by the Supreme Court of New Zealand
- The judgement granted Bathurst leave to appeal the New Zealand Court of Appeal’s decision from April 24, 2020
- The appeal will seek to reverse a dismissal regarding Bathurst’s USD$40 million (approximately A$55.9 million) performance payment to L&M Coal
- While a definitive date has not been fixed, the appeal is likely to be heard in late 2020
- Bathurst Resources shares have risen two per cent just after market open, trading for just over five cents per share
Coal mining company Bathurst Resources (BRL) has welcomed a judgement released by the Supreme Court of New Zealand.
In a reserved judgement which was released on Monday, the Supreme Court granted Bathurst Resources leave to appeal a specific decision of The Court of Appeal. This refers in particular to a decision from the New Zealand Court of Appeal, which occurred on April 24, 2020.
In April of this year, the Court of Appeal decided to dismiss Bathurst’s challenge to a 2018 judgement from the High Court. The High Court’s judgement held the company liable for a “performance payment” to L&M Coal Holdings, worth USD$40 million (approximately A$55.9 million).
However, Bathurst Resources has remained staunch in its opposition of this judgement, and the ensuing dismissal of challenges. The company has stated that, under the specific terms of the contract between Bathurst and L&M, the performance payment has not fallen due for payment.
With the Supreme Court’s grant of leave to appeal, Bathurst now has another chance to dispute the Court of Appeal’s decision. In doing so, the company may be able to contest the High Court’s judgement, and avoid paying L&M the much-debated performance payment.
The Supreme Court’s grant of leave to appeal also applies to Bathurst Resources’ subsidiary, Buller Coal.
In the announcement, the company stated that its directors and legal counsel are very pleased with this outcome.
So far, a definitive date for the appeal to be heard has not yet been set. However, it is likely that the appeal will be heard sometime late in the year.
Bathurst Resources shares have risen two per cent just after market open, trading for 5.1 cents per share