Frontera Resources to appeal Cayman injunction rejection

24th Dec 2018 09:00

(Sharecast News) - European-focused oil and gas outfit Frontera Resources has seen a Cayman Island grand court discharge its injunction against former director Stephen Hope and his Outrider Master Fund.Frontera's wholly-owned subsidiary, Frontera International Corporation, issued loan notes to the California-based fund back in 2016, with a due date in 2020.The AIM-listed company believes Hope was in breach of his fiduciary duties as director, claiming he had attempting to deprive Frontera of assets in order to benefit both himself and OMF, as well as failing to act in the best interests of the company and its shareholders, failing to exercise independent judgement and unlawful interference with the business of the company.Frontera alleges that OMF conspired with Hope when the two companies exchanged its 2016 notes into $30.1m into new secured notes due August 2020 and has been claiming damages against Hope and OMF of $56.28m.However, the grand court ordered that the injunction previously granted to Frontera that restrained Hope and OMF from enforcing the security underlying the notes was thrown out on 21 December.Frontera assured investors that would appeal the court's decision and that it intended to "continue to vigorously assert its rights in the action".As of 0900 GMT, Frontera shares were untreated at 0.29p.