Interesting how Ross Harper was not prepared to discuss any...

Interesting how Ross Harper was not prepared to discuss any litigation cases at the AGM. However the company is more than ready to inform the press with details.

It appears that Farkas has the funds to attract the big guns of Chile..........In the meantime ADY/Vallenar must find cash to pay for legal expenses if they proceeed with cases.

Source
www.mch.cl


Admiralty Resources it sued for misappropriation:

Farkas hired the attorney Gabriel Zaliasnik and fights in conflict with Australian partner
Ownership of Vallenar Iron Company (former mining Santa Barbara) is in the midst of a strong legal dispute.


01/12/08 Primary Mining Editor Updated Daily News



Several chapters are written in the context of the conflict which pits the company Admiralty Resources with the Australian media entrepreneur Leonardo Farkas and that is in the ownership of Vallenar Iron (former Santa Barbara), mining of iron which controls the Australian property and the Chilean businessman who participates as a minority.

The latter, in fact, began to assemble his defense team. He had already hired a communications consulting firm Hill & Knowlton Captiva. Now joined the services of the study Albagli Zaliasnik, being represented by one of its main partners, attorney Gabriel Zaliasnik.

The latter has advocated, among other clients, former South American presidents Carlos Menem and Alberto Fujimori in extradition proceedings, and Senator Jovino Novoa in the event of an edge Spiniak.

In this case there are two court cases, one in Australia, where the minority of Vallenar Iron Admiralty sued for any mismanagement in the production of iron by the controller. Australians counterclaim in Chile and accused Farkas of misappropriation by $ 176 million.

According Zaliasnik, the judicial response is a reaction to the demand for Farkas against Admiralty (ADY), and is related to the delicate financial situation of the Australian.

"The Australian company is in a process of financial deterioration more than evident, and in this context, means the case against Farkas. The figure (of $ 176 million) is at least anecdotal. If there were any objections, there were other mechanisms (to solve it internally), because this is a commercial dispute between partners, "he said.

Said that for now come Vallenar Iron complicated by its high debt levels and its limited capacity to generate resources.

"Part of the debt, they believe, would expire in February.'s Debt has increased. Who's debtor is Vallenar Iron, for ADY. Vallenar has no chance of paying this debt, the lack of resources it has. For something Besalco just introduced bills to school management, "said Zaliasnik.

On the demand of Vallenar Iron against Farkas, Zaliasnik said that the employer has not committed any illegal. "What we have here is a challenge to the policy of corporate social responsibility which, while administered Santa Barbara, conducted Leonardo Farkas. The question is also in bad taste, because it stems from the doubt as part of the donation that he committed to the Telethon 2007. It makes a lot of noise in respect of which $ 50 million came from one of the companies (Farkas) owned and operated, and in fact, pledged $ 235 million, and other companies also put their resources, and himself he did in his personal capacity, "said Gabriel Zaliasnik.

According replied Vallenar Iron, action in courts is fully justified. "They resorted to the courts, then, the product of audits conducted at the company, after taking control, have been found repeated and serious misappropriations, making this a crime, and justice is to know who is responsible ".

Besalco demand Vallenar Iron

Opened a new edge in the case. Besalco Machinery Inc. filed a lawsuit against Vallenar Iron Company, for non-payment of bills by almost $ 1.000 billion.

Accepted the management school who introduced the subsidiary of the construction firm linked to the family Bezanilla-serving Iron Mine Vallenar, ex-Santa Barbara, might eventually ask the bankruptcy of the defendant.

The invoices claimed by Besalco machines are all dated September 30, 2008, that is, were assumed by the current administration of the mining.

"(Admiralty) is a process of financial deterioration more than evident, and in this framework is that it means the (anti) demand.