Bre-X faces multiple suits following Busang debacle<\/p>\n
MONTREAL (JP): Embattled junior mining Canadian firm Bre-X
\nMinerals Ltd, after being suspended from operating in Indonesia
\nand delisted from the Toronto Stock Exchange, now faces multiple
\nlawsuits following the Busang debacle in East Kalimantan.<\/p>\n
Most local newspapers still run the Busang debacle on their
\nfront pages and report that the infamous Bre-X was being
\nassaulted on several new fronts.<\/p>\n
Bre-X faces at least three legal actions; from disappointed
\nshareholders, the Ontario Securities Commission, the Toronto
\nStock Exchange (TSE) and also possibly from the Indonesian
\ngovernment.<\/p>\n
Bre-X has been hit with at least seven class action suits
\nfrom shareholders seeking repayment of their losses from
\ninvesting in Bre-X shares.<\/p>\n
Harvey Strosberg of Winsor, Ontario, lawyer for the only
\nCanadian group to have filed a class action suit, has named Bre-X
\nand its officials in the lawsuits.<\/p>\n
The named officials include Bre-X chairman and chief
\nexecutive David Walsh, his wife Jeanette, who acts as corporate
\nsecretary, and chief geologist John Felderhof.<\/p>\n
Harvey Strosberg has said he is looking to broaden the list
\nof defendants to include brokerage firms for advising people to
\nbuy the shares.<\/p>\n
Canada's premier exchange TSE delisted Bre-X Wednesday saying
\nthat it \"no longer meets the required listing standards.\"<\/p>\n
After delisting Bre-X, TSE is almost certain to seek another
\nlegal action against the disgraced company for alleged insider
\ntrading practices and disclosure of incorrect, misleading
\ninformation.<\/p>\n
The Indonesian government has frozen all activities of Bre-X
\nand its subsidiaries in Indonesia. The freeze affects Bre-X and
\nBresea, which last month were awarded contracts of work to
\nexplore for and develop minerals in Indonesia.<\/p>\n
Minister of Mines and Energy Ida Bagus Sudjana has said that
\nthe national police have been ordered to investigate the
\ndisparity between Bre-X's tests and those by Strachcona.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo, who was now in
\nMontreal for an Asia-Pacific Economic Cooperation meeting, said
\nyesterday that the Busang debacle was more a problem for Canada
\nthan for Indonesia.(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bre-x-faces-multiple-suits-following-busang-debacle-1447893297",
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