Cascade directors launch legal action

The directors of Cascade Coal are seeking a judicial review of findings made against them by the NSW corruption watchdog.

Their action, launched in the NSW Supreme Court on Monday, comes in response to ICAC's report on circumstances surrounding the Mount Penny coal tenement and exploration licence.

"The directors completely reject the Commission's adverse findings against them," the statement says.

"The directors acted properly at all times and complied with all obligations in relation to the disclosure of relevant information to the New South Wales Government."

The action has been launched by Cascade directors John McGuigan, Richard Poole and John Atkinson, who were subject to corruption findings in an ICAC report handed down in July.

In the report, the ICAC also recommended the DPP consider prosecuting former NSW mines minister Ian Macdonald after it found he rigged a 2008 tender process for Mt Penny in the NSW Bylong Valley west of Newcastle.

The coal tenement was owned by the family of his disgraced former colleague Eddie Obeid.

A consortium of investors in Cascade Coal, in which the ICAC found the Obeids had disguised their 25 per cent stake, won the right to explore for coal at Mt Penny.

The statement from Cascade says there is no finding of wrongdoing by any directors involved in the legal action or by the company in relation to the creation of the Mt Penny tenement or the grant of the Mt Penny exploration licence.

"The ICAC report makes it clear that the Mt Penny Exploration Licence was granted by the Department in accordance with procedures and processes laid down by the NSW Government," it says.

The plaintiffs are seeking to have the corruption findings against them struck out and a declaration that ICAC's findings against them were wrong in law.

They also want all findings that they engaged in conduct with the intention of deceiving public officials or public authorities about the involvement of the Obeids struck out.