Plucinski suit relates to collateral shares
Pacific Rim Mining Corp PFG
Shares issued 20,117,370 Nov 6 close $0.93
Fri 6 Nov 98 Street Wire
by Brent Mudry
A suit filed against Pacific Rim Mining, promoter Catherine McLeod-Seltzer
and several other directors stems from loans made to the company by Marian
and Tadeusz Plucinski two years ago. In an endorsed writ of summons filed
Oct. 27 in the Supreme Court of British Columbia, the Plucinskis seek
unspecified damages. (Pacific Rim disclosed the suit on Nov. 6.) The named
defendants are Pacific Rim, Ms. McLeod-Seltzer, Gerald Phillips, Druval
Westcott and John Chalcraft. The writ notes the claim relates to a Dec. 14,
1995, loan agreement to finance exploration expenses in Argentina. The suit
claims the defendants provided unrestricted free-trading shares as
collateral against repayment of the loan, including interest. The
Plucinskis claim the defendants breached this agreement several times.
The suit notes that at the time of the default, the value of the collateral
shares was approximately equal to the value of the loan. "Several months
later, when the price of the shares had increased substantially, the
defendants imposed an injunction to restrict selling of the previously
forfeited shares, causing financial damages to the plaintiffs," states the
court filing. The Plucinski's claim the value of the collateral shares at
the date of the injunction, as well as other assets that were frozen. The
suit also seeks punitive damages. A related suit filed by Pacific Rim
against the Plucinskis was reported in Stockwatch on Apr. 14, 1997.
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