Clear Leisure optimistic as Sipiem court case begins

Clear Leisure PLC (LON:CLP) announced the first court hearing against the former directors of Sipiem was held last week in Venice.

The second hearing is scheduled for 6 May, while the entire process may take up to three years.

WATCH: Clear Leisure PLC’s CEO pleased that Sipiem case has now reached the courts

Sipiem, an Italian construction and leisure company, last year filed a claim against its previous executive management team and internal audit committee for fraud and mismanagement.

In September, Clear Leisure acquired the €10.8mln legal action from Sipiem, which is entitled to receive a third of any funds recovered.

The individuals are covered by an insurance policy covering €2mln per year, the AIM-listed investor said.

If the insurer does not agree with the validity of the claim, the policy would not apply, leaving the professionals more exposed and potentially more inclined to settle.

If the policy does apply, there is enough cash to cover expenses if the ruling is in favour of Clear Leisure, the company said.

“The Sipiem trial has finally started, and we are very pleased that two of the largest European insurance groups are involved, having provided professional insurance cover to several of the defendants,” said Clear Leisure’s chief executive Francesco Gardin.

“We are now assessing options with our lawyers to increase further the legal pressure on the defendants.”