Charter Pacific is party to a Share Purchase Agreement (SPA) with the Microlatch Group of Companies (Microlatch Pty Ltd, Securicom (NSW) Pty Ltd and Microlatch Limited (UK)) dated 27 September 2016 which remains in full force and effect and has a completion date of 30 March 2018.
In a separate matter, Charter Pacific has called upon Microlatch to repay certain loans granted to Microlatch over the last couple of years. Charter Pacific lent the money to Microlatch to support Microlatch and Mr Chris Burke in the development and maintenance of intellectual property and for other business activities. Even though Charter Pacific lent the money in good faith and on the basis of Mr Burke’s representations, and despite Charter Pacific making a legitimate demand under the law, Microlatch has refused to repay the money lent. Unfortunately this matter involving the loans is now before the Supreme Court in Queensland. On Friday the Court fixed the matter for a hearing on 31 January 2018. Charter Pacific simply seeks to recover money lent to Microlatch in good faith which Microlatch now refuses to repay.
In a post on the Microlatch website, Mr Burke said the following about what happened in Court on Friday: “Microlatch achieves another successful legal action in Supreme Court against Charter Pacific”. This is false. Mr Burke was in Court on Friday. He is well aware that the outcome on Friday was to fix the matter for a final hearing on 31 January 2018. For whatever reason Mr Burke is deliberately misleading the public and, presumably, his stakeholders about the Court process. Any cost awards in these proceedings will be but a fraction of the amount owing to Charter Pacific, which Microlatch will be ordered to repay.
In the same post, Mr Burke says that Microlatch is proposing a class action against Charter Pacific. This is a foolish statement. Mr Burke says that this is based on Microlatch’s concern for shareholders in Charter Pacific. This is entirely disingenuous. Why would any shareholder of Charter Pacific support the unlawful and misleading actions of Mr Burke? It is these very actions which are causing shareholders angst. The best thing that Mr Burke can do in the interests of the shareholders of Charter Pacific is to cause Microlatch to repay the monies lent and comply fully with all legal obligations under the SPA. If he does not do so he will be forced to do so by the Court.