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Part Settlement of Claims

21st Oct 2014 12:56

B.S.D. CROWN LTD - Part Settlement of Claims

B.S.D. CROWN LTD - Part Settlement of Claims

PR Newswire

London, October 21

B.S.D Crown Ltd (LSE:BSD) ("BSD" or "the Company") Part Settlement of Claims Tel Aviv, Israel, 21 October, 2014 Part Settlement of Claims The Company announces that it has entered into agreements to settle certainoutstanding claims made against it and disclosed in the prospectus published bythe Company on 29 July, 2014 and the financial statements of the company as of31 December, 2013 published by the Company on 27 March 2014 (the "SettlementAgreements"). The Company and some of its past directors were named as defendants in certainclaims, all in connection with the bankruptcy of Mr Eli Reifman, one of thefounders and a former director of the Company. In April 2012, two of Mr Reifman's creditors filed a claim (the "April 2012Claim") against attorneys who represented them in a transaction with Mr Reifmanand as part of this claim, the two creditors also named the Company and severalof its past directors, as well as a Company's external legal adviser and itsauditors, as defendants. The claim was for a sum of NIS 73.3 million(approximately GBP 12.1 million at present value). In June 2012, several creditors of Mr Reifman filed a claim against theCompany, several of its past directors as well as against a Company's externallegal adviser and its auditors (the "June 2012 Claim"). Following the dismissalof the claims of certain such creditors, the outstanding aggregate value of theJune 2012 Claim was the sum of NIS 81.8 million (approximately GBP 13.5 millionat present value). Pursuant to the Settlement Agreements, following contributions from theCompany's Directors & Officers Liability insurers, the Company has agreed topay, without admitting to any legal liability, (i) an amount of NIS 1.975million (approximately GBP 0.3 million at present value) in consideration ofthe full and final settlement of the April 2012 Claim; and (ii) an amount ofNIS 4.2 million (approximately GBP 0.7 million at present value) inconsideration of the full and final settlement of claims representing NIS 69.9(approximately GBP 11.6 million at present value) out of the June 2012 Claim. In addition, the Company has been informed in relation to the claim describedin paragraph 14.1.4 of Part 8 of the prospectus published by the Company on 29July, 2014 that the Company and several of its past directors were joined asdirect defendants by one of the creditors who filed the original claim, andthat the aggregate amount claimed from the Company and said past-directors hasbeen updated to NIS 22.4 million (approximately GBP 3.7 million at presentvalue). The Company is considering the amended claim and is yet to submit itsamended statement of defence. Following entrance into the Settlement Agreements and the updated claimdescribed above, the outstanding amounts pursuant to claims filed against theCompany in respect of Mr Reifman, amount to approximately NIS 30 million(approximately GBP 5 million). The Company will update the market in respect of all further developments, asappropriate. Further information about the Company For more information about the Company, visit www.bsd-c.com. Enquiries:

Eyal Merdler, CFO: [email protected]


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BSD.L
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