Court to decide if MEC Resources should repay BPH Energy
The discontent between BPH Energy and stakeholder MEC Resources is continuing with the launch of a new legal battle.
BPH said in an ASX announcement on Wednesday that it had served energy investor MEC (ASX:MMR), which holds an 8.3 per cent interest in the company, with a writ issued in the District Court of Western Australia.
BPH has also served a writ to Advent Energy, which both BPH and MEC have a stake in.
BPH said the writs were served on the two companies because they failed to pay outstanding debts by March 29 after being issued demand notices.
BPH is demanding the repayment of $225,486 from MEC and $164,744 from Advent.
A company associated with BPH, Grandbridge Ltd, has also served writs on MEC and Advent, as well as a subsidiary of Advent – Asset Energy.
Grandbridge wants the three companies to repay a collective debt of $430,431.
MEC, however, continues to dispute its liability for the debts.
The company said in an ASX announcement released to the market on March 29 that no formal agreement exists between Grandbridge, BPH and MEC in respect of the alleged claims.
“Despite repeated requests to demonstrate the substance of these claims, insufficient evidence has been provided to the company,” MEC said.
“The company is left with little option other than to vigorously defend its position in the best interests of shareholders.”
MEC shares closed up 5 per cent at 2.1c on Wednesday.