This security is in addition to the bank guarantee of A$360,000 provided by Metyor as security for BOQ's costs up to the first day of the trial, which is set down for 29 July 2002 in the Supreme Court of Queensland.
Metyor also advises its shareholders that it considers that the matter will go to trial, which is expected to last six weeks.
Commercial resolution is unlikely given that BOQ has not been willing to engage in any form of mediation or settlement discussions since the litigation was commenced on 24 April 2001.
Prior to the trial there are currently three interlocutory matters still to be heard, namely:
1. BOQ is seeking a further A$144,000 in security to cover its pre-trial costs over and above the A$360,000 in security already provided in respect of the period;
2. Metyor is seeking to amend its Statement of Claim. The majority of these amendments have been agreed with BOQ, but there remains a few to be dealt with by the Court; and
3. Metyor is seeking further documents from BOQ which BOQ through their lawyers, Clayton Utz, contends are privileged.
The last of these interlocutory applications is considered to be the most material as Metyor considers that much of the documentation which BOQ continues to claim is privileged, is not privileged or privilege has been waived.
This view is supported by the fact that BOQ has previously claimed privilege for documents which, when obtained by Metyor from third parties or by BOQ subsequently disclosing them, are seen to be not privileged and are helpful to Metyor's case.
Metyor commenced proceedings against BOQ on 24 April 2001 for, amongst other things, breach of contract and failure to act in good faith in relation to the operation of a joint venture company [JVCO], and is seeking damages for BOQ's failure to meet its obligations under the terms of the Shareholders and Subscription Agreement for JVCO dated 31 March 2000.
As part of its documentary evidence Metyor has submitted a report by an independent expert that assesses the losses suffered jointly by the joint venture partners Talisman Technologies Inc [the former name of Metyor prior to listing] and Saracen Financial Services Limited, at $AUD87.7 million, based on the initial installation of 300 ATMs by JVCO and a conservative estimate of the number of transactions processed by each of the ATMs installed. The losses suffered jointly by the joint venture partners Talisman Technologies Inc and Saracen Financial Services Limited rises to $AUD386.5 million if the projected 1000 ATMs had been installed by JVCO.
Further information on the litigation is provided in Metyor's earlier filings of 20 November 2001 and 26 February 2002, available at this internet address:
www.bsx.com/cgi-win/bermuda-inc.exe/bsx-news-releases
Copies of Metyor's evidence can be obtained by applying to the Supreme Court of Queensland
Metyor's ongoing business operations are not expected to be affected by the conduct of the court case.