cottee manoeuvres ahead of nexus agm - enb

Cottee manoeuvres ahead of Nexus AGM


Wednesday, 16 November 2011

DISSIDENT shareholders of Nexus Energy have moved to oust the company’s current board of directors and replace them with former managing director Richard Cottee, Wrixon Gasteen and David Carter.


Nexus is now checking the bid complies with the act before declaring a date for an extraordinary general meeting.

Cottee left the company over a disagreement with the board over negotiations he held with an undisclosed third party in relation to the Echuca Shoals asset.

Cottee said the deal was necessary in order to get the cash to develop its cornerstone Crux liquids project, which is subject to a retention policy.

However the Nexus board felt key parts of the deal were unfavourable, including the issue of 10% of Nexus’ issued capital to the counter-party and “key man” insurance, which Nexus claimed would create a $99 million liability for the company.

Cottee claimed earlier this week he assured the board that he would personally underwrite the insurance.

Meanwhile Nexus said it was in talks to finalise commercial negotiations relating to the future of the Crux asset and to appoint a new chief executive.