Former Wellard boss Balzarini to lose remaining shares to creditors

Creditors are set to swoop on millions of dollars of shares held by former Wellard boss Mauro Balzarini’s family after Wellard Ltd’s $77 million sale of the live exporter’s carrier, Ocean Shearer.

The sale of the vessel to Kuwait’s Al Mawashi means Wellard will pay out a $56 million loan to Italian bank Intesa, extinguishing restrictions that required the Balzarini family’s WGH Commodities to hold a minimum 12.5 per cent stake in the listed company.

“Wellard has been advised that when this restriction is lifted, creditors associated with Mr Balzarini’s private interests will take possession of the majority of those previously restricted shares,” Wellard told investors yesterday.

“Wellard has no influence over the timing and execution of that transfer, and an appropriate announcement will be made in due course.”

At the time of today’s announcement, WGH held a 12.75 per cent stake in Wellard worth $4.19million after the stock leapt 35 per cent to close at 6.2¢.

Separately, Wellard announced it had reached an out-of-court and undisclosed settlement of an unfair dismissal claim filed by Mr Balzarini in October.

The Federal Court lawsuit had targeted Wellard and executive chairman John Klepec, seeking damages, compensation and the reimbursement of out-of-pocket expenses.

Wellard announced in June that Mr Balzarini had ceased first his $900,000-plus a year role as chief executive and then his directorship with the company.

Court filings by Mr Balzarini, who was employed via a Wellard subsidiary in Singapore and lived in New Zealand, show he was notified by email on June 2 by Mr Klepec that his employment contract had been terminated with immediate effect.

Among Mr Balzarini’s grieveances was a $300,000 bonus he says he was due and $5440 of flight and hotel expenses incurred in attending a conference in Singapore in April.

He also complained of “demeaning and threatening” emails from Mr Klepec”.

Wellard had said the lawsuit would be defended.