Share
46,902 Posts.
lightbulb Created with Sketch. 8947
clock Created with Sketch. 03/11/14
11:21
Share
Originally posted by Undaunted
↑
Note the comment from above:"At the time Pluton was also facing legal threats from Rizhao, a major customer and creditor, over allegations it diverted shipments due for delivery to a Rizhao nominee to unknown buyers. Last Tuesday, lawyers acting for Rizhao wrote to Pluton and Wise threatening legal action if an explanation for the missing shipment was not supplied." 2.6 Rizhao update Under the long-term iron ore sales arrangement with Rizhao, the Company and Wise have agreed to deliver shipments of iron ore in accordance with an agreed shipping schedule. Subsequent to agreeing that shipping schedule, agreements have been reached with third parties whereby the Company and Wise have agreed to sell certain shipments that form the subject of the Rizhao shipping schedule to third parties. In the past, the Company, Wise and Rizhao have on a number of occasions agreed that shipments the subject of the Rizhao shipping schedule may be on-sold to third parties for a fee and subject to Rizhao’s prior written consent. Rizhao may claim that its prior written consent was not obtained nor a fee paid in respect of the on-sale of recent shipments to third parties where it ought to have been, which may give rise to a contractual claim against the Company and a right of Rizhao to demand repayment of a debt owed to it by the Company and the Wise. There is a risk of Rizhao taking enforcement action against the Company under the terms of an all assets security granted by the Company in favour of Rizhao that secures performance by the Company of its obligations for delivery of iron ore and repayment of the debt owed to Rizhao.
Expand
"delivery to a Rizhao nominee"
