Bula Resources had reneged on a golden handshake deal with its former managing director Mr Tony Peart, the High Court was told yesterday. The out of court settlement is reputed to be worth £300,000 (€380,921). Mr Justice Finnegan heard that Mr Peart quit his position with the company last week after settlement terms had been drawn up between lawyers for both parties.

Mr Tom Mallon, counsel for Mr Peart, said that as part of the settlement Mr Peart had agreed to his immediate resignation as managing director and the company's publicly announcing it to the Stock Exchange.

Mr Mallon said Peart was to have been immediately paid a "substantial sum of money" last Thursday and so far this had not been done. Mr Mark Connaughton, counsel for Bula Resources, told the court he accepted the money was due and owing. The delay had arisen due to the seeking of instructions with regard to matters of taxation and the manner of payment of the lump sum which was to be paid to a company registered in the United Kingdom.

Judge Finnegan granted Mr Peart liberty to serve short notice of service of a motion for judgment against Bula Resources returnable in court today.