Business
Settlement of litigation
Settlement of litigation.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n24 January 2006\n\n\nR.E.A. Holdings plc ('REA')\n\nAcquisition of minority shareholding in Makassar Investments Limited\n('Makassar') and settlement of litigation\n\nREA announces that it has reached agreement with Mr Morris E. Zukerman and his\nassociates, Bodley Investment Company, M. E. Zukerman & Co Incorporated ('MEZ\nInc'), M. E. Zukerman Investments Limited and the Zukerman Family Trust,\n(together the 'Zukerman parties') on the settlement of (a) litigation claims\nmade or threatened by the Zukerman parties against REA and three of its\ndirectors, Charles Letts, John Oakley and Richard Robinow, (together with\nMakassar, its subsidiary, PT REA Kaltim Plantations, and another subsidiary of\nREA, Makassar Participation plc, the 'REA parties') and (b) litigation claims\nthreatened by the REA parties against the Zukerman parties.\n\nPursuant to the settlement agreement (the 'Settlement Agreement'), REA has\nagreed to acquire the minority shareholding in Makassar (the 'Zukerman held\nMakassar shares') owned by certain of the Zukerman parties for a consideration\nof $19 million. In addition, PT REA Kaltim Plantations ('REA Kaltim') has,\nsubject as noted below, agreed to pay a total of $6 million as additional\ninterest on former loans to REA Kaltim from certain of the Zukerman parties and\nin settlement of various claims by MEZ Inc against REA Kaltim for fees in\nrespect of past services and financial support. Upon completion of the\nSettlement Agreement (which has been scheduled for 21 February 2006), all actual\nand potential claims relating to Makassar and REA Kaltim between the Zukerman\nparties and the REA parties will be released and the proceedings commenced in\nNew York in November 2001 by certain of the Zukerman parties against certain of\nthe REA parties will be dismissed with each side bearing its own costs.\n\nSave to the extent otherwise required by law or regulation (including, in the\ncase of REA, compliance with the rules of the Financial Services Authority), the\nREA parties and the Zukerman parties have given mutual undertakings to keep\nconfidential the terms of the Settlement Agreement and all matters discussed in\nthe mediated negotiations from which the Settlement Agreement has resulted.\n\nThe consideration of $19 million payable by REA for the Zukerman held Makassar\nshares will ...