This has been a very unfortunate chapter in the history of CCI Holdings (CHL). It is great to see the uncertainty now removed from this black cloud which has been hanging over the comopany since the ex chairman was booted out unceremoniously in late 2004. There was always going to be compensation payable for this as Mr cannane had only served less than 2 years of a very lucrative 4 year contract.
CCI will foot the 1.5M bill in sept, but the company is still in court with it's directors and third party Imperial pacific fund managers (IPFM who are the holding company of LCE's shareholding in CCI). It would appear the directors themselves will be liable for much of these costs, while at this stage CCI will only be footing the legal bill which has already been partly included in the unaudited accounts ending 30/6/06.
I believe if justice is done here the 3 directors and IPFM will be footing the bill for this payout and any costs directed at CCI should be at least partly recoverable on insurance.
The company does have a strong cash position so coming up with these funds will not be a problem. Let's just hope they quickly pass the costs on to those responsible for inflicting this expense on the company.
Regards,
Barry.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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