2 Oct 2012 10:30
Cosalt plc
("Cosalt" or the "Company")
Update on Melville Court Case
Further to the announcement on 27 September 2012, the Company announces that the Court of Session in Edinburgh has granted a further extension to enable the legal documentation to be finalised for the settlement that has been agreed in principle between Cosalt and Calum Melville and Stuart Melville. On 25th September the Court granted a decree in favour of GTC Group (a wholly owned subsidiary of Cosalt) against Meapac in the sum of £2.5m plus interest and expenses.
The settlement terms, with the remaining defenders, are that GTC will be paid £2 million by Calum Melville and Stuart Melville of which £1 million will be paid immediately in cash and the £1 million balance will be paid over an 18 month time period. The payments are to be secured by means of a pledge of the entire share capital of Global Integrated Services, a company wholly controlled by the Melville family. In the event that the amounts to be paid are not made on the due date the share capital of Global will be transferred to GTC. Additionally, no change of control of Global Integrated Services will be allowed until all payments have been made.
The payments will be in full and final settlement of all cases presently brought by the Company against Calum Melville and Stuart Melville and companies associated with them. Calum Melville and Stuart Melville have not admitted to any liability in reaching this settlement.
Enquiries:
Cosalt plc Trevor Sands, Chief Executive Officer | Tel: +44 (0) 1472 725560 |
Cardew Group Tel: +44 (0) 207 930 0777
Tim Robertson