Formal claims of c.US$10m lodged against Lonrho

RNS Number : 1686M

Cambria Africa PLC

14 July 2014

 



14 July 2014

Cambria Africa plc
("Cambria" or the "Company")

Cambria issues formal claims totalling approximately US$ 10 million against Lonrho Ltd

Cambria Africa plc, the Southern Africa focussed investment company, announces it has launched legal proceedings in the High Court against Lonrho ltd ("Lonrho"). The particulars of the proceedings, inter alia, state that Cambria:

·    seeks to rescind the settlement agreement previously reached  with Lonrho, as announced on 22 July 2013, resulting from alleged fraudulent misrepresentations by or on behalf of Lonrho Ltd  during the settlement negotiations;

·    claims in relation to monies which are alleged by Cambria to have been unlawfully transferred by Lonrho for the benefit for one of their subsidiaries whilst Lonrho were managing Cambria in 2008; and, 

·    claims for US$ 8.8 million related to three aircraft previously owned by Cambria, which were leased to then subsidiaries of Lonrho.  These alleged claims include (i) fraudulent misrepresentations by Lonrho to Cambria relating to the purchase of one of the aircraft by Cambria from Lonrho; (ii) breaches of contract, negligence and breaches of fiduciary duty resulting in (a) unpaid maintenance reserve and lease charges; (b) diversion of insurance claims proceeds by Lonrho to one of its subsidiaries which were properly due to Cambria; and, (c) loss of value of the aircraft due to the poor condition of the aircraft when they were repossessed by Cambria, including, but not limited to, missing engines, missing avionics, and missing propellers.

Cambria and its advisors are continuing to make further investigations into other possible instances of Lonrho's mismanagement of Cambria.

Cambria will update the market  of any material updates to the above proceedings.

Contacts
Cambria Africa Plc	www.cambriaafrica.com
Ian Perkins	[phone]
Edzo Wisman	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Nick Field	[phone]
Peterhouse Corporate Finance Limited	www.pcorpfin.com
Charles Goodfellow / Duncan Vasey	[phone]
FTI Consulting	www.fticonsulting.com
Edward Westropp / Adam Cubbage	[phone]

 

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