Business
Settlement of legal dispute
Settlement of legal dispute.
About this update from Clontarf Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1396K Clontarf Energy PLC 25 July 2013 \n \n\n \n25 July 2013\n \n \nClontarf Energy plc (\"Clontarf\" or the \"Company\") (AIM: CLON) \n \nSettlement of legal dispute\n \nThe board of directors of Clontarf Energy announces that legacy legal proceedings in Texas against subsidiaries of the Company and against certain directors of the Company have now been settled. The cost to Clontarf, including legal fees, is £300,000. Hydrocarbon Exploration, a wholly owned subsidiary, has agreed to pay a further £300,000. These payments represent a full and final settlement of the legal dispute.\n \nJohn Teeling, chairman, commented: \"Clontarf Energy is pleased that this legacy legal issue inherited when Clontarf was listed has now been settled. The expense, inconvenience, uncertainty and opportunity costs inherent in proceeding with further litigation in a case ongoing since 2007 led all parties to an agreed settlement without any admission of liability. We have now a strategy in Peru and we are working towards a solution suitable for our Bolivian assets. The Company's focus going forward will be on African oil opportunities\".\n \nTwo directors of Clontarf, John Teeling and Jim Finn have agreed to lend the Company on an unsecured basis £200,000 (the \"First Loan\") and £100,000 (the \"Second Loan\") respectively (together, the \"Loans\"). It is intended that the Loans, which are non-interest bearing and have no term will be converted into new Clontarf ordinary shares at the next placing. \n \nThe Loans are related party transactions for the purposes of AIM Rule 13. The Directors (excluding John Teeling) consider, having consulted with the Company's nominated adviser Shore Capital & Corporate Limited (\"SCC\"), that the terms of First Loan are fair and reasonable insofar as the Company's shareholders are concerned. The Directors (excluding Jim Finn) consider, having consulted with SCC, that the terms of Second Loan are fair and reasonable insofar as the Company's shareholders are concerned.\n \nThe Hydrocarbon Exploration payment of £300,000 has been met through an unsecured loan of two years from Finanzas & Legal Corporativos S.A.C. PFI, an established Peruvian oil and gas financing group. The loan to Hydrocarbon has an interest rate of 10% with an option to conve...