30th Jan 2014 14:34
LONDON (Alliance News) - Redhall Group PLC Thursday said it has accepted an offer of GBP2.1 million from Vivergo Fuels Ltd, as a full and final settlement to the claims which drew to a close at the end of last year.
Redhall, the specialist engineering support services group successfully defended the action brought by the biofuel company at the end of last year, after the court found that Vivergo was in "repudiatory" breach of the contract with the engineering group's subsidiary Redhall Engineering Solutions Ltd, and that the contract was unlawfully terminated.
In addition, it was determined that the group's subsidiary was entitled to an overall extension of time on the contract of 24 days.
Redhall said the settlement offer will be paid in cash within five days, although it said the offer fell short of the amounts it was hoping to recover.
"This offer falls considerably short of the amounts the Board believed were recoverable based on the views of its professional advisers throughout the legal process. However, the protracted timetable for recovery of monies through further legal proceedings; the uncertainty as to the ultimate outcome of such proceedings; and the cost and cash outflow implications pose an unacceptable level of risk to the Group," it said.
Shares in Redhall were trading 1.4% higher Thursday afternoon, at 52.20 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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