REG - Cambria Africa PLC - Formal claims of c.US$10m lodged against Lonrho <Origin Href="QuoteRef">CMBC.L</Origin>

Cambria AfricaAnnouncement

06/09/2014 16:25

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RNS Number : 1686M
Cambria Africa PLC
14 July 2014 
 
14 July 2014 
 
Cambria Africa plc
("Cambria" or the "Company") 
 
Cambria issues formal claims totalling approximately US$ 10 million against
Lonrho Ltd 
 
Cambria Africa plc, the Southern Africa focussed investment company, announces
it has launched legal proceedings in the High Court against Lonrho ltd
("Lonrho"). The particulars of the proceedings, inter alia, state that
Cambria: 
 
·    seeks to rescind the settlement agreement previously reached  with
Lonrho, as announced on 22 July 2013, resulting from alleged fraudulent
misrepresentations by or on behalf of Lonrho Ltd  during the settlement
negotiations; 
 
·    claims in relation to monies which are alleged by Cambria to have been
unlawfully transferred by Lonrho for the benefit for one of their subsidiaries
whilst Lonrho were managing Cambria in 2008; and, 
 
·    claims for US$ 8.8 million related to three aircraft previously owned by
Cambria, which were leased to then subsidiaries of Lonrho.  These alleged
claims include (i) fraudulent misrepresentations by Lonrho to Cambria relating
to the purchase of one of the aircraft by Cambria from Lonrho; (ii) breaches
of contract, negligence and breaches of fiduciary duty resulting in (a) unpaid
maintenance reserve and lease charges; (b) diversion of insurance claims
proceeds by Lonrho to one of its subsidiaries which were properly due to
Cambria; and, (c) loss of value of the aircraft due to the poor condition of
the aircraft when they were repossessed by Cambria, including, but not limited
to, missing engines, missing avionics, and missing propellers. 
 
Cambria and its advisors are continuing to make further investigations into
other possible instances of Lonrho's mismanagement of Cambria. 
 
Cambria will update the market  of any material updates to the above
proceedings. 
 
 Contacts                                                     
                                                              
 Cambria Africa Plc                    www.cambriaafrica.com  
 Ian Perkins                           +44 (0) 796 4908 951   
 Edzo Wisman                           +44 (0) 796 4908 950   
                                                              
 WH Ireland Limited                    www.wh-ireland.co.uk   
 James Joyce / Nick Field              +44 (0) 207 220 1666   
                                                              
 Peterhouse Corporate Finance Limited  www.pcorpfin.com       
 Charles Goodfellow / Duncan Vasey     +44 (0) 207 220 9791   
 FTI Consulting                        www.fticonsulting.com  
 Edward Westropp / Adam Cubbage        +44 (0) 203 727 1521   
 
 
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