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Former shareholders of Advanced Environmental Solutions (AES)
have reached a settlement with Bord na Móna over outstanding
claims by the energy company in relation to its €61 million
acquisition of the firm.
The settlement comes after protracted negotiations over a
number of months between the two sides and reduces the payout
that 170 former shareholders will receive from the deal.
A small number of the former shareholders have now raised
issues in relation to the settlement. They have threatened
legal proceedings against the shareholders’ representatives,
according to a letter circulated to shareholders by the representatives
in recent days.
Bord na Móna acquired
waste company AES in March 2007. Most of the company was owned
by entrepreneur Bill McCabe and senior management, although
170 other individuals also held shares in the firm.
Under the terms of the deal, AES provided a warranty and
indemnity in relation to cleanup and remedial works that may
have been required on a number of its waste sites. AES provided
waste management services and had a number of sites around
the country.
Part of the sale money was subsequently placed into a bank
account to cover any such liability with the funds managed
by the shareholders’ representatives. As of September 2008,
there was €9.2 million in the account, according to the correspondence
from the representatives.
The letter stated that a number of liabilities had since
arisen in relation to sites at Ballymorris, Co Clare and Timahoe,
Co Laois. Bord na Móna also raised issues in relation to a
third site in Navan, Co Meath, with the state body stating
that remedial work on the site would cost around €7 million.
Following negotiations between the two sides, a final settlement
was agreed, whereby AES agreed to pay 60 per cent of the €7
million.
That deal left €1.6 million in the shareholders’ account,
with other funds going on legal fees. In a letter circulated
by the representatives, who have signed the agreement, they
stated that they 'consider this settlement to be the best
outcome'.
The letter also stated that the representatives were putting
together a 'fighting fund' for shareholders, should
they wish to take action against the former owners of the
Ballymorris and Timahoe sites. Any future action will be based
on the take-up of the fund.
The letter stated that a number of former shareholders had
raised issues in relation to the Navan site. AES acquired
the site in 2002 from businessman John Corrigan, who is one
of the shareholder representatives.
The letter also stated that the time limit for any action
in relation to this deal had lapsed and that the majority
of the shareholders were happy to allow Corrigan to continue
as a representative. The letter added that the money would
be retained in the bank, rather than distributed, in the event
of any future litigation.
Source - The Sunday Business Post
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