23rd Oct 2007 07:01
Cashbox PLC23 October 2007 Cashbox PLC ("Cashbox" or "Company") Cashbox ,the UK ATM provider, today announces that it has reached agreement on afull and final settlement (the "Settlement") with Hanco ATM Systems Limited("Hanco") concluding the litigation brought by Hanco against the Cashbox ATMSystems Limited (the "Company's Subsidiary"). Under the terms of the Settlement, the Company's Subsidiary has agreed to pay£1.8 million to Hanco together with interest accruing daily if payment isdeferred. The Company's Subsidiary has the option of deferring payment of the£1.8 million for up to 2 years on the basis that interest will accrue on thesettlement sum at a rate of 5 per cent. per annum for the first year and at 20per cent. per annum thereafter. Payment of any interest may also be deferred forup to 2 years. The obligations of the Company's Subsidiary under the Settlementare guaranteed by the Company. As previously announced, the Company's Subsidiary has the benefit of a joint andseveral indemnity in connection with this litigation, which the Company and itssubsidiary propose to enforce. In accepting the terms of the Settlement, Hancoforegoes the right to bring any further claims against the Company or itssubsidiary in relation to the subject matter of the proceedings. John Maples, Chairman, of the Company, commented:"I am pleased that both sides have been able to reach agreement and bring thismatter to a close. The Company is currently at a key stage of its growth and onethat demands the full attention of its senior management. This settlement drawsto a close one of the major issues that Ciaran Morton and David Auger inheritedon joining the Company in April 2007. "With the recent funding secured through our credit agreement with Bank ofScotland, the management team is now able to fully concentrate on the rapiddeployment of ATMs across our estate and drive this business forwards towardsprofitability." For further information: Cashbox PLC 01256 441000David Auger, Chief Financial Officer Threadneedle Communications 020 7936 9606Josh Royston/Graham Herring This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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