9th Sep 2008 07:05
GALIFORM PLC
Settlement of MEP's net asset value claim
Galiform plc ("Galiform") announces that it has today agreed to pay MEP Mayflower Limited ("MEP") £8 million in full and final settlement of MEP's net asset value claim against Galiform, payable on 12 September 2008. MEP's original claim was for £57m.
The settlement is in line with Galiform's previous guidance on the likely amount that would be payable under the claim and is within the provision made by the Group in respect of the claim.
Note 16(a) of Galiform's 2008 Half Yearly Report gave details of MEP's net asset value claim, as well as other contingent liabilities arising from the sale of the MFI retail business (including guarantee arrangements under certain leases of properties which are occupied by the MFI retail operations). These other contingent liabilities are unaffected by today's settlement.
Galiform's Chief Executive, Matthew Ingle, said:
"We are pleased to have settled this dispute for £8 million, a small fraction of the original £57 million claim. Not only does this demonstrate the strength of our case, it avoids a long, expensive and distracting process, provides closure on this issue and is well within the provision we made."
Enquiries
Investors/analysts: Media:
Gary Rawlinson Brunswick Susan Gilchrist
Head of Investor Relations Anna Jones
+44 (0)207 535 1127 +44 (0)207 404 5959
+44 (0)7989 397527
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