Capital management firm Worldview has announced it is suing Petroceltic International for breach of corporate governance.
Worldview, which is the biggest shareholder in Petroceltic, said yesterday that it had issued legal proceedings against the company in the High Court in London last week.
However, a spokesman for Petroceltic said the company had not received notification of the proceedings and added that it did not know which jurisdiction the claim was being made in.
According to Worldview, which is also calling for the immediate resignation of Petroceltic’s chief executive, Brian O’Cathain, the firm breached a corporate governance agreement between the two.
In particular, Worldview has alleged that Petroceltic, and specifically O’Cathain, did not intend to carry out a review of the company which was agreed to on 16 June 2014.
Worldview partner and chief executive Angelo Moskov said: “Worldview is very disappointed that Brian O’Cathain and the management have chosen not to honour the company’s agreement with its largest shareholder. We see it as a gross breach of corporate governance. We are withdrawing our support for the CEO and the management team effective immediately and we reserve our right to pursue legal action against other executives and board members.”
Petroceltic was recently the subject of speculation concerning a possible offer from Dragon Oil. After Dragon Oil announced it would not be making an offer, Petroceltic’s share price plunged, by as much as 39 per cent at one point.