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Forge faces legal battle

Forge faces legal battle

Photo by Bloomberg

20th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Embattled project house Forge might be facing more woes after litigation fund Bentham IMF announced that it was looking to fund a class action against the company and its directors, claiming breaches of continuous disclosure obligations.

Forge was recently forced into administration after failing to garner financial backing from financing major ANZ after major financial losses were reported on the West Angelas power station, in the Pilbara, and the Diamantina power station, in North Queensland.

The administrators have to date cut some 1 300 jobs at Forge across its Australian operations.

Bentham IMF on Thursday accused Forge of “misleading and deceptive conduct”, and alleged breaches of continued disclosure regarding the two power station projects.

The litigation fund called on Forge shareholders who held shares after January 2013, to participate in the claim.

Edited by Creamer Media Reporter

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