Mining technology company Imdex has settled a long-running dispute with Boart Longyear, securing a $10 million payout and likely control of local firm Globaltech.
Mining technology company Imdex has settled a long-running dispute with US company Boart Longyear, securing a $10 million payout and likely control of local firm Globaltech.
The commercial settlement brings to an end legal disputes in Canada, Australia and South Africa, and gives Imdex control of all of Globaltech’s patents and trademarks.
It comes just a few weeks after Globaltech director and shareholder Gordon Stewart tried to oust the administrators put in charge of his company, as detailed below.
The dispute goes back to 2016, when Imdex commenced legal action against Globaltech alleging a breach of its ‘core orientation’ patent.
Globaltech is 58 per cent owned by Boart Longyear, a major US-based drilling contractor, and operates from Boart’s premises in Forrestfield.
In March this year, after numerous hearings and appeals, the Federal Court ordered Globaltech to pay $7.96 million to Imdex.
A few weeks later, Globaltech was placed into voluntary administration, with Rob Brauer and Shaun Fraser of McGrathNicol put in charge of the business.
Imdex subsequently negotiated a deed of company administration (DOCA) with the administrator on July 31.
The DOCA was subsequently challenged by a number of Boart Longyear companies, with a court hearing scheduled for October.
In the meantime, Boart Longyear and Imdex have negotiated a commercial settlement that resolves all legal disputes.
The agreement includes the transfer of certain intellectual property to Imdex, new supply agreements between the parties and a $10 million payment to Imdex.
Boart Longyear has also agreed to support Imdex’s DOCA for Globaltech.
In addition, all of Globaltech’s patents and trademarks will be incorporated as part of Imdex’s intellectual property portfolio and Boart Longyear will receive a licence for some of its tools.
The DOCA includes Imdex paying $800,000 to the administrators.
The administrators initially supported a DOCA proposed by Boart subsidiary Veracio but opted for a revised proposal from Imdex.
Unsecured creditors, other than Boart Longyear and Imdex, would have been repaid in full under both proposals.
In July this year, Gordon Henderson applied to the Supreme Court to have the McGrathNicol administrators replaced by Tom Birch and Jeremy Nipps of Cor Cordis.
He alleged the McGrathNicol administrators were not free from apprehended bias.
That was primarily because two other McGrathNicol partners, Jason Ireland and Robert Smith, had been directors of Boart Longyear’s holding company between 2017 to 2022 during a restructuring process.
Mr Henderson’s application was rejected by Justice Strk.
Imdex managing director Paul House welcomed the deal.
“We are pleased to bring this long running dispute to an end and look forward to starting a new chapter in our relationship with Boart Longyear, where we get to provide our market leading technologies with one of the world’s pre-eminent drilling companies,” he said.
“We believe this settlement agreement creates a firm foundation for both our companies to work together to deliver improved productivity and data outcomes for our mining customers globally.”
