York Timber Organisation Limited - Minister And Di
York Timber Organisation Limited
(Registration number 1916/004890/06)
ISIN : ZAE000008108 1AAA06FAF37B7489E72184B723FB5B3A
Share code : YRK
27 February 2003
In a judgment handed down 26 February 2003, the High Court in Pretoria ordered
the Department of Water Affairs and Forestry to make Yorkcor operating
subsidiary York Timbers Limited an unconditional offer of sawlogs, that were to
be supplied over a five-year period ended 31December 2004, from three supplying
plantations near Buchbuckridge. This is in terms of an "evergreen" contract and
involves the entire volume of timber which will be available from silvicultural
operations in those plantations.
The High Court furthermore declared the Minister of Water Affairs and Forestry
and his Director-General to be in contempt of court and awarded costs on the
punitive scale as between attorney and own client, to mark the court`s
disapproval "of the way in which the State has attempted to avoid its
responsibilities in terms of the agreement."
The judge stated, "The Department should have given notice of cancellation to
[York Timbers] as it was entitled to and then dealt with the question of
compensation: i.e. honestly and fairly as [York Timbers] frequently suggested.
Instead, it seems to have been content to wage this pointless war of attrition
in the courts. This is not how the State should conduct business."
Yorkcor chairman Solly Tucker said that this is one of several cases involving
the government, as well as parastatal Safcol, in which JSE-listed Yorkcor has
sought to vindicate the group`s log supply entitlements in the teeth of attempts
to strike down or diminish its "evergreen contracts". The court observed that
this was another battle in the war of attrition which the parties have waged in
the courts since at least 1994.
In a previous action that was taken on appeal to the Supreme Court of Appeal,
Yorkcor was awarded damages, interest and costs amounting to over R6 million
for breach of contract.
Arbitration proceedings are underway to determine the amount of compensation the
government is obliged to pay Yorkcor for terminating its York Lumber evergreen
contract with effect from 2007 on the basis of "a going concern . . . enjoying
the benefits of the contract without interruption. The intention is to place
[York Lumber] in at least the same financial position as if the contract had not
been terminated" [from clause 4.5.2].
Ends
ISSUED FOR : Yorkcor Limited
CONTACT : Solly Tucker (012) 804 9730/083 456 9900
FAX NO : (012) 804 8611
E-MAIL : sol@yorkcor.co.za
WEBSITE : www.yorkcor.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 Cell: 082 443 6399
FAX NO : (011) 325 4199
E-MAIL : tish@tspr.co.za
DATE : 27 February, 2003
Date: 27/02/2003 05:41:00 PM Supplied by www.sharenet.co.za
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