Back in late 2014 NKP executed a Settlement and Release Deed with a number of parties related to ex director Peter Landau. If you were to read page 51 of the 2017 Annual Report issued April this year this would provide a summary of events/status etc.
My recollection is that after some NKP shareholders raised the issue of the debt the company finally took some action.
On 21.10.2016 NKP advised (ASX Announcement) that a writ had been filed with the Supreme Court of WA for the recovery of $2.5m ( plus interest?) from P.Landau. CIV 2780/2016.
On 13.6.2017 NKP advised that proceedings had commenced,
On 19.10.2017 NKP advised that parties attended mediation. This was the last ASX Announcement.
Court appearances were scheduled around 16.8.2018, 25.10.2018 and 12.11.2018 with no ASX Announcements on what had transpired.
Note that I have been told that parties did not appear in Court at the Aug 2018 and Nov 2018 scheduled meetings. No fixed date has been advised for 2019. Will the case and $2.5m debt simply disappear when the NKP takeover is completed????
Last month I contacted the ASX enquiring as to why NKP was allowed to avoid its Continuous Disclosure Rule. The response finally received this week was as follows:
“As you are aware, listing rule 3.1 requires the immediate disclosure by a listed entity of any information concerning it that would reasonably be expected to have a material effect on the price or value of the entity’s securities. The Federal Court’s orders relate to procedural matters between the relevant parties, rather than their substantive rights, and would not be regarded by a reasonable investor to be material to the price or value of NKP’s securities.”
What I do not understand is that NKP noted on each of its past announcements that it would “ update the market on the proceeding as and when required”. It has failed to adhere to its statement. However NKP considered the matter so important that it devoted a whole page in the 2017 Annual Report. The ASX appears to disagree.
In my opinion one has to question the effectiveness of the ASX in enforcing its own rules. What do you think?
