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18 Sep 2017 07:00
18 September 2017
Gama Aviation Plc (AIM: GMAA)
Response to Press Coverage
Gama Aviation (the "Company") notes the article that appeared in The Sunday Times this weekend regarding legal action between the Company and Dustin Dryden, a former director of the Company, and/or entities associated with Mr Dryden (the "Dryden Entities").
Whilst this legal action is ongoing the Company is not able to comment on the details of the action itself but would note the following by way of background:
1. The legal action relates to a series of claims and counter claims filed between the parties during the period November 2016 to February 2017.
2. In July 2017 the court ordered that these various claims be consolidated into a single action which is now scheduled for a hearing in June 2018.
3. The net result of the consolidation is that the aggregate value of the respective claims between the parties is as follows:
a) A total of c. £850k being claimed by the Company from the Dryden Entities, principally in respect of unpaid trade receivables for services rendered.
b) A total of c. £6.1m being claimed by the Dryden Entities from the Company resulting from a host of allegations ranging from failure to provide goods or services to associated losses and damages.
4. The Directors of Gama Aviation have carefully considered the implications for the Company of each of these claims at the time they were made and have continued to do so on a regular basis subsequently, including receiving advice from its solicitors and counsel.
a) In respect of the claims made by the Company against the Dryden Entities the amounts receivable by the Company have either been provided for in full or are appropriately secured. The provisions were principally made in the latest audited financial statements for the year ended 31 December 2016. All trading relationships with the Dryden Entities ceased at the end of 2015 with only a small amount of work in progress falling into the first half of 2016.
b) In respect of the claims made by the Dryden Entities against the Company, the directors concluded that no provision or disclosure was required at the time the claim was made or at any time subsequently.
ENDS
For further information please visit www.gamaaviation.com or contact:
Gama Aviation Plc +44 (0) 1252 553029
Marwan Khalek, Chief Executive Officer
Kevin Godley, Chief Financial Officer
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Soutar
Gama Aviation - Notes to Editors
Gama Aviation Plc (AIM:GMAA) is a global business aviation services group that specialises in providing support for individuals, corporations and government agencies; allowing them to deliver on the promises they make.
The Group's services are split into two divisions: Air and Ground. Air services include aircraft management, special mission support and charter. Ground services cover aircraft maintenance services, aircraft modification design and installation, and Fixed Base Operations (FBO).
More details can be found at: http://www.gamaaviation.com/
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