COURT SETTLEMENT DOES NOT FAZE ‘GARBAGE KING’
Written on the 17 April 2012
DESPITE paying a $35 million legal settlement to aggrieved shareholders, Transpacific Industries Group (TPI) is still upbeat about 2012.
Kevin Campbell (pictured), CEO of the Milton-based waste management company, tells Brisbane Business News Transpacific is experiencing solid growth across all collection systems.
“We won new contracts in industrial work for clients, including Caltex. At the moment, we have secured 198 ongoing contracts, each running for five and seven years,” he says.
Shareholders collaboratively sued the ASX-listed company over alleged continuous disclosure breaches.
Litigation funder IMF, which financially backed the class action, speculates it will generate revenues totalling $13.1 million from the settlement if enough members agree to the offer and stop pursuing legal action against TPI.
The payout will be made in two tranches, the first $25 million of which will be paid in June 2012 with up to $10 million deferred until June 30, 2014.
Transpacific made no admission of liability, but agreed to settle for up to $35 million or about.
Chairman Gene Tilbrook reveals TPI opted for a structured mediation process due to the likely costs and uncertainties inevitably associated with claims of this nature.
“The negotiated settlement with members of the proposed securities class action will resolve this action, which grew out of events that occurred several years ago under management regime,” he says.
“The focus of the current Board and senior management continues to be firmly on building TPI into a world class management company.”