Keybridge Receives $1.7M Loan Repayment, Courts Uphold New Board Control

Board Overhaul and Financial Disarray

In a significant corporate reset, Keybridge Capital Limited (ASX – KBC) has been working through the aftermath of a turbulent period marked by financial disarray and legal disputes. The NSW Court of Appeal’s confirmation of the new board in May 2025 marked a turning point, enabling fresh leadership to take control and begin addressing the company’s challenges.

The new board quickly uncovered substantial outstanding debts linked to litigation and administration costs, revealing a company in need of urgent financial and operational restructuring. Keybridge has relied heavily on short-term funding facilities to regain control of its primary asset, Yowie Group Ltd (ASX – YOW), and to negotiate with creditors.

Loan Repayments Signal Progress

Amidst the turmoil, Keybridge has received a promising partial repayment of AUD 1.7 million from its loan to Foundation Life NZ, with a remaining balance of approximately AUD 3 million. The company anticipates further repayments in early and late 2026, providing some financial relief and a sign of recovery in its investment portfolio.

Legal Victories Against Former Executives

Keybridge has secured several court victories in its ongoing litigation against former executives, notably Nicholas Bolton. The Federal Court dismissed Bolton’s derivative action against Kirant Regional Media Investments Pty Ltd, with the judge questioning Bolton’s good faith. Additionally, the NSW Supreme Court upheld the new board’s appointment at Yowie, rejecting attempts by former directors to delay shareholder meetings and entrench their positions.

Costs for these proceedings have been awarded against Bolton personally, and Keybridge has successfully avoided bearing these legal expenses. These rulings reinforce the new board’s authority and help restore governance integrity.

Pursuit of Fund Recovery and Compliance

The board is actively pursuing recovery of over $7 million in payments made to entities related to former directors, which it views as unjustified and lacking shareholder approval. Freezing orders have been granted over Bolton’s Australian assets, including funds linked to a property purchase in Italy, as part of these recovery efforts.

Meanwhile, Keybridge is working closely with auditors to resolve longstanding financial reporting issues and ensure compliance with the Corporations Act and ASX Listing Rules. This focus on transparency and governance is critical to rebuilding investor confidence.

Looking Ahead

While the company faces ongoing litigation and legacy disputes, the new board’s decisive actions and recent legal successes provide a foundation for stabilisation. The coming months will be pivotal as Keybridge finalises its financial reports and continues to recover funds, setting the stage for a clearer path forward.