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Gupta tells court he has actually run out of cash, wishes to settle Trafigura scams case

Lawyers for entrepreneur Prateek Gupta, accused of scams by commodity trader Trafigura, told a London court on Tuesday he has actually run out of funds to pay legal charges and wants to work out a settlement.

Geneva-based Trafigura filed a suit versus Gupta in February last year, declaring seven companies that Trafigura stated are managed by him performed methodical fraud involving what were supposed to be nickel cargoes.

Trafigura scheduled a problems last year of $590 million due to the supposed fraud.

They are having problems ... in moneying the remainder of the litigation, lawyer Barnaby Lowe informed the London Commercial Court concerning his customer Gupta and his companies.

An agent for Gupta stated in a declaration that there was a short-term problem with capital, but the offenders had considerable illiquid properties.

The hold-up in realising those properties is regrettable however ... once understood, those properties will without difficulty fund a. comprehensive and energetic defence to these procedures.

Justice Simon Picken rejected a demand by Gupta for an. instant suspension of court proceedings for 8 to 12 weeks,. which Lowe said was needed to find brand-new sources of financing and. allow negotiations for a settlement.

Picken said it was necessary not to interrupt the present. procedure of disclosure ahead of a trial most likely to be held next. year and ordered a suspension of proceedings from Oct. 1 to Nov. 29.

A court file filed by Trafigura said that Gupta's. legal representatives have not been paid because August 2023.

Lowe stated Gupta intended to discover additional funds from third party. receivables worth $191 million and a claim he made in Australia. worth $240 million.

Gupta stopped working to meet a Feb. 24 deadline to make an interim. payment of 330,000 pounds to Trafigura in costs after a judge. last December denied Gupta's quote to raise a worldwide freeze on $625. million worth of his personal and company possessions that has actually been. in location because February 2023.

Trafigura said on Tuesday it did not oppose negotiations in. principle, but was sceptical about the motives behind the. suspension request.

Trafigura doubts the ... sincerity to participate in such a. negotiated dispute resolution process and presumes that this is. yet another delaying tactic, it stated in a court document.

There is a long history of settlement deals ... and. absolutely nothing has come of it, David Peters, a lawyer representing. Trafigura, told the court.

Hundreds of pages of brand-new files were launched in. connection with the December hearing including WhatsApp messages. and emails that Gupta in his defence stated show Trafigura staff. came up with the scams. Trafigura and its staff have actually denied the. claims.

(source: Reuters)