Last checked at 11 Dec 2019 07:00
Date: 11th December 2019
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
Litigation Update
Gama Aviation is pleased to announce the High Court settlement of a previously reported Hangar 8 claim and wishes to provide a progress update on the final remaining Hangar 8 legacy claims.
SPC Aviation Ltd ("SPC") and Mr Dustin Dryden:
Gama Aviation has reached an agreement to settle the current legal proceedings between the parties. Accordingly, and pursuant to an order sealed in the High Court on 10 December 2019, the current legal proceedings between the parties have been stayed with immediate effect.
Under the terms of the agreement, which is in full and final settlement of the current court proceedings between the parties, SPC releases its various damages claims against the Company totalling some $4.4m and Gama Aviation releases its counterclaim against SPC in respect of historic trade receivables totalling some $1.3m and its claim against Dustin Dryden relating to SPC's claims against the Company.
As previously reported these receivables have been fully provided for in the Company's financial accounts. Accordingly, the terms of the settlement will have no impact on the underlying financial results of the Company.
Other than to the extent disclosed in this announcement, the terms of the agreement are subject to a mutual confidentiality provision.
Taleveras / Mr Igho Sanomi
Under these proceedings, the Company is pursuing the recovery of trade receivables totalling some $3.1m from Mr Igho Sanomi and associated entities, Taleveras Petroleum Trading DMCC and Taleveras Group of Companies Limited ("TGC").
The Company is pleased to announce that following a hearing in the High Court on 22nd November 2019, it has obtained judgment for $1m in its claim against TGC. This follows 3 previous judgements obtained over the last 12 months and brings the total awards by the courts to some $2.5m plus interest and legal costs. Proceedings for the remainder of the unpaid trade receivables are continuing and the Company is now pursuing the collection of the sums awarded.
ASECNA
This matter is in the final stages of the litigation in the Paris courts. The final hearing took place in November and the judgment is expected in January 2020. Any potential liability ruled against Hangar 8 has been fully provided for in the Company's financial accounts and will have no impact on the underlying financial results of the Company.
The Company's overall legal costs incurred in connection with these three matters is anticipated to be approximately £1.7m in aggregate for 2019 which will be included in exceptional items and will have no impact on the underlying financial results of the Company.
Marwan Khalek, CEO of Gama Aviation Plc commented: "The Company welcomes the settlement of the SPC Aviation Ltd case, the continuing progress on the Taleveras case and the imminent conclusion of the ASECNA case. In aggregate the Board continues to anticipate a net cash inflow as an overall result of all litigation matters subject to the successful collection of the Taleveras trade receivables."
End
Gama Aviation Plc +44 (0) 1252 553000
Marwan Khalek, Chief Executive
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Jefferies International +44 (0) 207 029 8000
(Nominated Advisor & Broker)
Simon Hardy
Will Soutar
Gama Aviation - Notes to Editors
Gama Aviation (GMAA) is a global business aviation services company that specialises in providing support for individuals, corporations and government agencies. Gama Aviation is now one of the top three global players in a highly fragmented market, with a fleet of around 250 aircraft. Gama operates across Europe, the US, the Middle East, Asia and Africa.