I'm very concerned that CCP has no provision to pay the damages in this case.
From their annual report: "...the consolidated group is not insulated from all costs and damages which may arise from this claim. . . . No provision has been recognised to cover any potenmtial damages that may be awarded by the court"
As an in-priciple settlement has been made that vacates the hearing, it's obvious that Credit Court has admitted fault, and will be paying hefty damages. Clime was a major shareholder and supporter of CCP, and did not take lightly its losses when CCP's share price fell from $12 to around 50c in a matter of weeks. Clime's shareholders, in turn, will be entitled to the maximum compensation for their investment losses.
My guess is that CCP will have to pay about $5M, plus legal costs. Where will they get the money for this, given they have almost no Cash?
CCP Price at posting:
$3.84 Sentiment: None Disclosure: Not Held
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