West Perth-based oil and gas company Carpathian Resources Ltd has settled a long-running legal dispute with former directors Gerald Johnson and Ildiko Wowensy out of court.
Mr Johnson and Ms Wowensy had served a Supreme Court writ against the company in June 2004, claiming damages for breach of a management agreement between a company related to themselves, Geological & Corporate Management Pty Ltd, and Carpathian.
They had claimed $833,333 - which has now been removed from the company's books as a contingent liability. The terms of the settlement remain confidential.
Mr Johnson and Ms Wowensy had earlier resigned their directorships to avoid further costs to the company caused by a second general meeting called by shareholders seeking their removal.
There had been a previous meeting with that aim held five months prior.
The full text of a company announcement is pasted below
Carpathian Resources Limited (Carpathian or the Company) (ASX: CPN and AIM: CPNR) is pleased to advise that it has settled the legal proceedings issued out of the Supreme Court of Western Australia, in June 2004, by Geological & Corporate Management Pty Ltd. Geological & Corporate Management Pty Ltd is a company related to the former Carpathian directors Gerald Johnson and Ildiko Wowensy.
All claims and counterclaims have been dismissed by agreement between all parties to the proceedings. Pursuant to the settlement deed, the terms of the settlement are to remain confidential and Carpathian is not permitted to make these terms public.
Following the settlement, the Company will be able to remove the A$833,333 contingent liability arising from the legal proceedings from its accounts. With the removal of this ongoing distraction, management can focus on implementing a new growth strategy to build Carpathian into a leading oil and gas company.
