WILLIAMSON – An Australian investment company has filed a $9 million foreign judgment petition against a Tennessee-based energy company that has mining operations in southern West Virginia.
Hangri Investments Pty Ltd. filed the petition February 24 in Mingo Circuit Court against Active Resources Inc., which is based in Knoxville. It has mines in Gilbert and Iaeger. Jon Eric Nix is director and chief executive officer of Active Resources.
Earlier this month, the Supreme Court of Queensland affirmed a judgment in favor of Hangri for $9,212,621 against Active, Nix and parent company Arrow Resources.
In that case, Hangri claimed Active Resources had engaged in misleading or deceptive conduct. The parties entered into a deed of settlement. Arrow Resources, an Australian company incorporated to raise capital for Active Resources’ U.S. mining operations, also was a party to the deed.
Records show Active Resources defaulted under the deed, and Hangi purported to terminate it. Hangri sought judgment against Active Resources and Arrow Resources.
Active Resources is incorporated in the Delaware and holds interests in some coal mining ventures in West Virginia. Nix is a director and the chief executive officer of Active Resources. Arrow Resources is a company incorporated in Australia, which has acquired all issued shares in Active Resources. Arrow Resources raised capital for Active Resources’ mining ventures through the sale of convertible notes and by having itself listed on the Australian Securities Exchange.
Hangri is incorporated in Australia. In 2021, it paid $12 million to Arrow Resources pursuant to convertible note agreements. In February 2022, Hangri subscribed for $3 million in shares in Arrow Resources. In March 2022, it purchased $1 million in shares in Arrow Resources from Nix.
In March 2023, Hangri filed its petition in Australia claiming Active Resources and Nix had engaged in misleading and deceptive conduct. Default judgment was entered against Active, Arrow and Nix. After some negotiations, the parties entered into a deed of settlement. Under that deed, each party agreed to “refrain and forbear from commencing or further pursuing against any other party.”
Active Resources defaulted in its obligations under the deed, and Hangri purported to terminate it on the basis of that default.
Australian court records show that Active Resources paid the first instalment of $2 million, but not the second or third instalment payments which were due to be paid in June and July 2024. On September 30, Hangri sent a letter to the U.S. lawyer acting for all three defendants terminating the June 2024 agreement “due to your client’s breach.”
Hangri filed its Australian lawsuit on October 15, obtaining the ruling on February 10. It filed the petition seeking foreign judgment in Mingo County on February 24.
“The attached judgment is only against Active Resources Inc., although it is responsible for the entirety of the amount,” the Mingo petition states. “Plaintiff seeks to domesticate this judgment … only in order to protect its interests, and not for any false or nefarious means, and it contends that the interests of justice would be advanced by said domestication.”
Hangri is being represented by attorney Ward Morgan of Bluefield.
Mingo Circuit Court case number 25-C-29