forge group shareholders threaten legal action

Forge Group shareholders threaten legal action
PUBLISHED: 2 hours 12 MINUTES AGO | UPDATE: 0 hour 11 MINUTES AGO

Investors in the collapsed mining services firm Forge Group are threatening legal action, alleging management’s recent earnings assessments were over-optimistic.

Shares in the company were suspended on Wednesday as the sharp slowdown in the mining investment boom claimed another victim. Forge’s stock has dived 78 per cent since November as the deteriorating conditions finally took their toll.

But several domestic and international institutional investors are livid at the turn of events, as many had bought in off the back of Forge’s 2013 half-year commentary.

Paul Hannan, at BT, is said to be among the group of disgruntled stakeholders.

Forge’s accumulated debts are pegged at about $500 million, with creditors expected to face a shortfall. ANZ is the largest single creditor with an estimated $200 million exposure......................................

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