Richard Hughes.
Grant Sparks and Richard Hughes are far from extricating themselves from the self-inflicted tribulations that accompanied their tenure as general-purpose administrators (GPAs) of IG Power Callide Pty Ltd (IGPC) but an application for an inquiry into the pair’s conduct sought by obstreperous Czech investor and Callide joint venture partner Sev.en Gamma A.S. has been shelved.
What remains in contest is Sparks’ and Hughes’ anticipated multi-million claim for remuneration and expenses, which failed to win creditor approval and has yet to be brought before a court despite some 22 months passing since the pair sensationally fell on their swords and were replaced by FTI Consulting’s John Park and Ben Campbell.
In the Federal Court yesterday counsel for the ex-GPAs Doran Cook told Justice Roger Derrington his clients want the court to hear their remuneration application as soon as possible. Urgency was necessary because the application isn’t straightforward.
“It’s some $5 million in remuneration and the discovery in this matter could run into quite significant costs,” Cook said.
Of course, legal costs are what the now abandoned inquiry application was about and given the orders for discovery made yesterday Sev.en Gamma has got what it wanted, being orders for discovery and an opportunity during the coming remuneration application hearing to cross examine Hughes about approximately $10 million in legal expenses incurred during the ex-GPAs’ six months at the helm.
Sev.en Gamma is claiming the decision making that led to that amount of legal fees being incurred amounted to malfeasance in office.
It wants to claw back as much of it as it can, an unwholesome prospect for Hughes and Sparks given the money has long since found its way into various lawyers and barristers’ bank accounts.
Cook told Justice Derrington that approximately 11 per cent of the total remuneration to be claimed relates to the legal fees SEV.en Gamma asserts were excessive and unreasonably incurred.
That percentage is not one that Sev.en Gamma’s lawyers were prepared to agree to given they’ve not yet seen the remuneration application.
Confirming the collective expectation that the matter will be beset by privilege disputes counsel for Sev.en Gamma told the judge that his client sought repayment of “the improperly incurred legal expenses.”
Impressed by the calibre of legal counsel present and mindful of their rates of pay Justice Derrington described himself as a “lowly paid opinion writer” before making orders to bring the matter back before him on July 14.
Further reading:
Deloitte duo’s Callide migraine persisting
Coal-fired conundrums continue for Callide GPLs
Deloitte duo stumble again in Callide litigation
Deloitte duo capitulate on Callide
Callide GPAs eliminate liability as funds dwindle
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