Lawsuit expansion and reponse to Petroceltic
Worldview notes Petroceltic's statement regarding Worldview's Circular, and considers their response to consist largely of baseless propaganda
Worldview to amend its legal proceedings against Petroceltic to include a number of further breaches to the shareholder agreement
Worldview, an investment management group which holds almost 29% of the share capital in Petroceltic International Plc ("Petroceltic" or the "Company") notes the announcement made by the Company on 11 February 2015 in relation to its response to Worldview's Circular published on 9 February.
Worldview stands firmly behind its analysis, and is confident that
· Without radical change of strategy, the Company is going to run out of money very soon;
· Worldview's proposal to accelerate production whilst reducing pre-production capital expenditure in Algeria are wholly feasible from both a technical and regulatory perspective and simply reflect industry best practise.
Furthermore Worldview totally refutes the claim by Brian O'Cathain that Worldview is trying to gain control of the company. Worldview recognises the irony of this statement, as it sees Brian O'Cathain as the primary architect of the destruction of shareholders' value.
Worldview believes shareholders will recognise that Petroceltic's statement lacks meaningful new disclosure, vital financial data and strategy, moreover that they will also recognise the ludicrous nature of Petroceltic's instruction to shareholders 'Don't let Worldview destroy your Company'. Worldview holds 29% of the Company's shares. Brian O'Cathain and his management team only have a negligible shareholding in the company. We re-iterate our position that management are over-remunerated, mediocre and complacent and believe that the Entrenched Board is simply focused on maintaining their position rather than developing the business in the best interests of shareholders.
Expansion of Legal Proceedings against the Company
Worldview has already an existing claim currently before the High Court for failure to conduct a corporate and strategic review of the business in breach of the shareholder agreement between Worldview and Petroceltic.
Today it announces that it will be seeking to modify the claim to include a number of further breaches to the agreement that have arisen from statements within Petroceltic's circular to shareholders on 28 January 2015. These regard Petroceltic's proposed resolution to appoint two additional independent, non-executive directors, which would take the total number of directors on the Board to eight. This is in breach of the Agreement, which limits the total number of directors to seven. Further, the Board has 'determined' that Don Wolcott and Joe Mach are not independent directors. This is also in breach of the Agreement, which expressly provided that Mr Wolcott and Mr Mach be appointed as independent, non-executive directors.
Worldview continues to urge shareholders of Petroceltic to vote FOR the Worldview resolutions and AGAINST the resolutions proposed by the Entrenched Board
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