Re Settlement
26 Octubre 2005 - 6:33AM
UK Regulatory
RNS Number:1851T
Birse Group PLC
26 October 2005
For immediate release
26 October 2005
Birse Group plc ("Birse Group")
Settlement of Citibank Litigation
The Board of Birse Group is pleased to announce that Birse Construction Limited
("Birse") has reached a settlement agreement with CIB Properties Limited ("CIB",
a Citibank group company) arising from the termination of the contract for
construction services for a new data centre facility at Riverdale, Lewisham (the
"Citibank Litigation"). Birse has entered into a legally binding agreement with
CIB under which Birse has agreed to pay an amount of #1.22 million together with
CIB's costs as assessed but which are currently estimated by Birse to be in the
region of #2.0 million, in full and final settlement. This payment is in
addition to the sum of #2.3 million previously announced and paid to CIB.
The amount is payable in 14 quarterly instalments starting on 1 February 2006
and will bear interest at LIBOR plus 1.5 per cent. The total cost of the
settlement (excluding the #2.3 million already paid), together with Birse's own
costs, will be charged to the profit and loss account as an exceptional
operating item in the current year.
The settlement agreement gives Birse Group the option to satisfy up to #720,000
of the liability by way of issue or issues of ordinary shares to CIB by
reference to the market price of such shares on the dates such options are
exercised.
The group interim results for the half year ending 31 October 2005 are expected
to be announced on 16 December 2005.
Commenting on the agreement, Peter Watson, Executive Chairman said:
"My Board colleagues and I are delighted to have reached this settlement with
CIB. Through this settlement agreement, we have removed the significant risk to
Birse from the uncertainty of a major litigation process and have also now
brought to an end the payment of considerable ongoing legal fees that were being
incurred. With this major issue fully resolved the Directors are now able to
concentrate on accelerating the forward momentum of the Group."
Enquiries:
Birse Group plc Telephone: 01302 768 078
Peter Watson, Executive Chairman
Martin Budden, Group Managing Director
Financial Dynamics Telephone: 0207 831 3113
Sally Lewis
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPUGGWUUPAGGQ
Birse (LSE:BIE)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Birse (LSE:BIE)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
Real-Time news about Birse Grp. (London Stock Exchange): 0 recent articles
Más de Birse Group Plc Artículos de Noticias