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("Cosalt" or the "Company")
Update on Melville Court Case
Further to the announcement on 2 October 2012, the Company announces that it has agreed a full and final settlement for £2 million of all the cases presently brought by the Company against Calum Melville and Stuart Melville and companies associated with them.
The settlement terms, are that GTC (a wholly owned subsidiary of Cosalt) will be paid £2 million by Calum Melville, Stuart Melville, Denmore Investments Limited and C11 Limited, of which £1 million is intended to be paid by 23 October 2012 and the £1 million balance will be paid quarterly over an 18 month time period.
The payments are to be secured by means of a pledge over the entire share capital of Global Integrated Services Limited ("Global"), a company wholly controlled by the Melville family. Under the pledge, the shares of Global shall be assigned to GTC in security of the amounts due under the settlement. The pledge must be delivered to GTC by 16th October 2012. Failure to deliver the pledge will result in a default on the settlement at which point all of the sums outstanding under the agreement will become immediately payable, with interest.
In the event that payments of the amounts due are not made on the due dates, the share pledge over the shares of Global becomes enforceable. No transfer of the pledged shares will be allowed until all payments have been made. The settlement has been accepted without admission of liability.
As a consequence, theCourt of Session in Edinburgh has put the case on hold for six months to allow the implementation of the settlement.
Trevor Sands, Chief Executive Officer
Tel: +44 (0) 1472 725560
Cardew Group Tel: +44 (0) 207 930 0777
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