International Oil and Gas Technology trust faces $15.8m damages claim
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A former co-investment manager of the £44.4m International Oil and Gas Technology trust has launched proceedings to claim more than £10m in damages.
The trust’s latest trading update reveals that Canadian firm Quorum Funding Corporation is seeking $15.8m (£10.2m) from the trust after alleging it was wrongfully terminated from the fund’s management.
Quorum was co-investment manager of the trust, which used to be called the Quorum Oil and Gas Technology fund, until July 1, 2010.
The firm’s contract was terminated after the trust’s directors claimed there was an “ongoing dispute” between its two co-investment managers – Quorum and Sefton Partners – that prevented a “proper working relationship”.
Quorum denies that any breach of contract took place and says it “continued to work tirelessly in the fund’s best interests” while attempting to resolve the dispute with Sefton Partners.
The company indicated on September 9, 2011, that it would take legal action against the trust and started proceedings to claim damages on January 16. (article continues below)
International Oil and Gas Technology trust, which is trading at a 37% discount, says Quorum statement of claim does not contain any allegations or facts which the board was previously unaware of.
“The claim made is entirely without foundation and the basis for calculation of damages speculative and far-fetched,” a statement by the board says.
“The board will vigorously defend the claim and is considering the counterclaims that can be made against Quorum and its principals.”
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