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VDM and BHP are locked in a legal battle following BHP’s decision to remove VDM from the Jimblebar project in Western Australia’s Pilbara in August.
VDM is seeking around $A10 million from BHP for damages but BHP is also seeking about $9.3 million from VDM for defective works and damages.
The contractor previously received $4 million from BHP through a mediation process but a dispute over the remaining claims is ongoing.
VDM says its bond provider, Asset Insure, has paid BHP $2.42 million under two bonds provided by the contractor for the Jimblebar contract.
The payment follows demands from BHP but Asset agreed to repay the amount in several stages to help VDM manage its cash flow.
The first stage will include $1.45 million paid now and a further $20,000 paid immediately as an extension fee.
A further $969,435 will be paid once VDM completes a rights issue worth at least $10.5 million.
The rights issue is VDM’s final step in a recapitalisation plan following the Jimblebar dispute, with the company previously cutting 40 workers and divesting its construction and consulting businesses.
