23rd Jun 2009 15:00
Environmental Recycling Technologies plc
Claim Update
Environmental Recycling Technologies plc ("ERT" or "the Company") (AIM: ENRT), which has developed and is exploiting the patented rights to the Powder Impression Moulding ("PIM") process capable of converting mixed waste plastics into commercially viable products, today announces that it has not succeeded in overturning the original judgement obtained by Mr Daley against ERT in relation to the compensation claim. The compensation claim amounts to £0.5m and was fully provided for in the unaudited interim results for the six months ended 30 June 2008.
As a result of recent investigations by ERT into the activities of its former Chief Executive Officer in the Kyrgyzstan Republic while he was responsible for the operations of Camco, ERT have filed a claim against Mr Daley for misappropriation of company money, a claim which will exceed the compensation claim which he is entitled to.
Both ERT and Mr Daley are currently in mediation discussions. The Directors believe these discussions are in the best interests of both parties. Shareholders should be aware, regardless of the mediation discussions, that the level of compensation being sought under Mr Daley's compensation claim exceeds the present immediate cash resources of the Company. Further there can be no guarantee that mediation discussions or the Company's claim against Mr Daley will be successful.
The Board will keep shareholders updated on any material developments.
ENQUIRIES:
Environmental Recycling Technologies Plc Tel: 0845 071 1394 Roger Baynham (MD) Ken Brooks (Chairman)
Evolution Securities Tel: 020 7071 4300 Tim Worlledge Bobbie Hilliam
23 June 2009
Related Shares:
ENRT.L