|
|||
![]() |
|||
2012-09-27 18:41:15 CEST 2012-09-27 18:42:16 CEST REGULATED INFORMATION Marel hf. - Company AnnouncementSupreme Court rules in favour of MarelThe Supreme Court of Iceland has today, 27 September, given its judgement in the case Glitnir bank hf. brought against Marel hf. The verdict is in favour of Marel. The judgement is accessible in whole (in Icelandic only) on the Court's website: http://www.haestirettur.is/domar?nr=8334. The case originates from a dispute between the parties on the method of settlement of certain derivative agreements, which were made in relation to the issuance of a bond (MARL 06 1) in 2006. Immediately following the collapse of Glitnir in October 2008, Marel's management requested that the agreements would continue to be valid until the agreed end date of February 2012. However, Glitnir was not able to honour its obligations under the agreements and the parties agreed on a settlement on 5 May 2009. As a result, Marel paid EUR 20.3 million to Glitnir. Using a different method of calculating the settlement amount, Glitnir claimed that Marel should pay an additional EUR 4 million plus 6% interest from the date of settlement. Marel's opinion was that this approach was invalid as Glitnir had failed to meet the terms of the derivatives agreements and could therefore not claim further payment profiting from the Bank's failure to comply with the agreements. Both parties agreed to file their disagreement on the method of calculation to the Icelandic courts for resolution. The District Court of Reykjanes ruled in favour of Marel 12 April 2011, and now the Supreme Court of Iceland has given its verdict on the matter, reaffirming the ruling of the District Court. Marel welcomes this decision given it supports the company's position on this matter. The case is now closed and puts an end to any uncertainty relating to Marel's original settlement with Glitnir. |
|||
|