22nd Feb 2006 07:00
R.E.A.Hldgs PLC21 February 2006 R.E.A. Holdings plc ("REA") Completion of litigation settlement REA announces that the agreement (the "settlement agreement") made on 23 January2006 (and announced on 24 January 2006) between REA and certain of itssubsidiaries and directors of the one part (the "REA parties") and Mr M EZukerman and connected parties of the other part (the "Zukerman parties") hasbeen completed. At completion, a total of $6 million was paid in cash by REA's subsidiary, PTREA Kaltim Plantations ("REA Kaltim"), to certain of the Zukerman parties asadditional interest on former loans to REA Kaltim from certain of the Zukermanparties and in settlement of various claims by one of the Zukerman partiesagainst REA Kaltim for fees in respect of past services and financial support.At the same time, REA acquired all of the issued shares hitherto owned by theZukerman parties in REA's subsidiary, Makassar Investments Limited, for aconsideration comprising the issue of $19 million nominal of 7.5 per cent dollarnotes 2012/14 of REA ("new dollar notes"). The completion of the settlement agreement has resulted in the release of allactual and potential claims relating to Makassar and REA Kaltim between theZukerman parties and the REA parties. The action commenced in New York inNovember 2001 by certain of the Zukerman parties against certain of the REAparties is being discontinued with each side bearing its own costs. The completion of the settlement agreement has also resulted in the agreementannounced on 14 February 2006 for the issue by REA of 1,372,000 ordinary sharesof 25p each ("new ordinary shares") for cash at a price of 260p per sharepursuant to a placing becoming unconditional save as respects admission of thenew ordinary shares to the Official List of the Financial Services Authority andto trading on the London Stock Exchange's market for listed securities. It is expected that admission of the new dollar notes and new ordinary sharesreferred to above will become effective and that dealings in such new dollarnotes and new ordinary shares will commence on 22 February 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
R.e.a.hldgs.