September 08, 2008

Melewar gets court injunction to stop sale of Gindalbie shares

Bloomberg reported that Melewar Steel Ventures Ltd has won a temporary court injunction to halt the sale of its Gindalbie Metals Ltd shares that were pledged against a loan from collapsed Australian securities firm Opes Prime Stockbroking Ltd.

Melewar Steel in a statement said that a court will hear the case on April 10. It added that the total potential loss is 32 million Gindalbie shares or MYR 38 million (USD 12 million).

Gindalbie said that the receiver of Opes Prime ordered the sale of 32 million shares or 6.2% of Gindalbie, that Melewar Steel pledged against the outstanding loan from the broker.