AlphaGlobal Capital is seeking R142.8-million from Eastern Platinum (Eastplats) and its subsidiary Eastplats International in a claim submitted to the high court in the British Virgin Islands (BVI).
The claim document states that the amount includes sums outstanding and payable by Eastplats under a promissory note agreed upon by the companies in 2007.
The amount includes default interest at the date of the BVI statement of claim – May 15 and such default interest continues to accrue.
A copy of the claim has been sent to Eastplats’ South African lawyers, but has not been officially served on Eastplats.
AlphaGlobal states that, prior to April 2007, it held rights to receive fees or reimbursements of expenses, loans or other payments from Guvebu Consortium Investment Holdings.
It further states that, on April 25, 2007 the parties signed a settlement letter by way of which all payments to the claimants from Guvebu were assigned to Eastplats in exchange for R123-million for which Eastplats and Eastplats International were jointly and severally liable to AlphaGlobal.
Under the settlement letter, an initial amount of R36-million was paid to AlphaGlobal upon the closing of the acquisition by Eastplats of about 42% of the issued and outstanding shares of Guvebu.
The balance of the consideration in the sum of R86-million – as agreed in the settlement letter – was undertaken by way of a promissory note to be paid by Eastplats and Eastplats International to AlphaGlobal.
The terms of the settlement letter was repeated in the promissory note, signed on May 4, 2007. Under the promissory note, Eastplats promised and covenanted to pay to AlphaGlobal the R86-million and default interest.
AlphaGlobal says that whereas Eastplats admits that an event of default had taken place under the promissory note with AlphaGlobal, Eastplats contends that any claim had prescribed.