JP Morgan execs in Sydney court
(23 February 2010 – Australia) Top executives from JP Morgan appeared in court on Monday in an effort to enforce a A$50 million bill sent to Ukrainian billionaire, Gennadiy Bogolyubiy.
The disputed bill for advisory fees linked to the A$1.3 billion takeover of Consolidated Minerals, will see Jon Gidney, JP Morgan’s managing director of investment banking, and Andrew Pidham, head of investment banking, take the stand.
JP Morgan claims that it is owed a further A$30.8 million of the A$50.8 million advisory bill sent to Consolidated Minerals.
The Australian newspaper reported that the bill comprised of a base fee of A$10.3 million, which was 0.75 percent of the value of the A$1.3 billion paid by Palmary, incentive fees of A$35 million, an ongoing retainer and GST.
Also included in the bill is A$99,227 worth of expenses, including a domestic airfare bill of A$48,144 and a telephone bill of A$3,764.
In February 2008, Consolidated Minerals sent the bank a cheque of A$20 million ‘for full and final payment’ for the services provided by the investment bank. The investment bank deposited the cheque ‘therefore accepting the settlement terms’ argues Consolidated Minerals.
Consolidated Minerals said that the investment bank agreed to a cap of A$7 million for the deal, and in a cross claim alleges the investment bank actually owes them A$13 million.
Consolidated Minerals also said that the verbal agreement, which took place in a July 2006 phone call, did not form part of the written agreement later signed by both companies.
Rod Baxter, the former managing director of Consolidated Minerals, is also expected to take the stand.
JP Morgan claims that it is owed a further A$30.8 million of the A$50.8 million advisory bill sent to Consolidated Minerals.
The Australian newspaper reported that the bill comprised of a base fee of A$10.3 million, which was 0.75 percent of the value of the A$1.3 billion paid by Palmary, incentive fees of A$35 million, an ongoing retainer and GST.
Also included in the bill is A$99,227 worth of expenses, including a domestic airfare bill of A$48,144 and a telephone bill of A$3,764.
In February 2008, Consolidated Minerals sent the bank a cheque of A$20 million ‘for full and final payment’ for the services provided by the investment bank. The investment bank deposited the cheque ‘therefore accepting the settlement terms’ argues Consolidated Minerals.
Consolidated Minerals said that the investment bank agreed to a cap of A$7 million for the deal, and in a cross claim alleges the investment bank actually owes them A$13 million.
Consolidated Minerals also said that the verbal agreement, which took place in a July 2006 phone call, did not form part of the written agreement later signed by both companies.
Rod Baxter, the former managing director of Consolidated Minerals, is also expected to take the stand.
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