Bentley Capital Secures $250K Settlement from Keybridge Over Legal Costs

Background to the Dispute

Bentley Capital Limited (ASX, BEL) has announced a significant development in its long-running legal dispute with Keybridge Capital Limited (ASX, KBC). The dispute, which has been unfolding through a series of Federal Court judgments since 2019, centered around the allocation of legal costs related to proceedings involving Bentley’s former nominee director, William Johnson.

William Johnson served on Keybridge’s board from July 2016 until April 2020, a period during which Bentley was a major shareholder and had appointed several board nominees. The legal battles culminated in a 2024 Federal Court ruling that Keybridge was liable to contribute 50% of Johnson’s legal costs incurred during the proceedings.

Terms and Implications of the Settlement

Under the recently executed Settlement Deed, Bentley will receive a total of $250,000 from Keybridge, with $200,000 payable by 28 November 2025 and the remaining $50,000 by 28 February 2026. While the settlement terms remain confidential beyond these payment details, the agreement effectively closes this chapter of litigation between the two companies.

This settlement not only provides Bentley with a tangible financial recovery but also removes ongoing legal uncertainty. For Keybridge, the resolution may help to clear a lingering overhang on its balance sheet and investor confidence, especially given the public nature of the Federal Court judgments.

Bentley’s Changing Relationship with Keybridge

It is notable that Bentley substantially reduced its shareholding in Keybridge back in July 2020, retaining only a minimal stake of 20,000 shares. This divestment followed the earlier phases of the legal dispute and signals a strategic shift away from direct influence over Keybridge’s governance. The settlement thus marks a final financial reconciliation rather than a renewal of corporate ties.

For investors, the resolution of this dispute removes a layer of legal risk from Bentley’s profile and may free up resources previously earmarked for ongoing litigation. However, the confidentiality of the settlement leaves some questions about potential related liabilities or future claims.

Looking Ahead

With this settlement, Bentley can now focus on its core investment activities without the distraction of this protracted legal battle. Meanwhile, Keybridge will likely aim to reassure its shareholders that it is moving past this contentious episode. Both companies will be watched closely for any further developments or disclosures related to this matter.