Lalors settle $53m payout with Sons of Gwalia creditors
Article from: PerthNow
Michael Bennet
April 16, 2009 10:40am
THE former directors of failed Perth-based gold miner Sons of Gwalia have agreed to a $53 million settlement with the company's administrators.
Brothers Peter and Chris Lalor will contribute $3 million to the settlement and be absolved of any further action brought by creditors, with the directors' insurers to kick in the remaining $50 million.
The claim against the former directors had exceeded $200 million, but administrator Ferrier Hodgson claimed the $53 million was "acceptable".
Ferrier Hodgson is now expected to use the cash to pursue a huge $1 billion action against the company's auditors Ernst & Young.
It is alleged the accounting group failed in its accounting of hedging contracts which attributed to Sons of Gwalia's demise in 2004 with about $800 million debt.
The directors settlement must be approved by Sons of Gwalia creditors at a meeting in Perth on May 13.
lalors settle $53m payout with sons of gwalia
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