Environmental Recycling Technologies settles litigation with former unit CEO

Environmental Recycling Technologies (AIM: ENRT) has reached settlement in a series of disputes and litigation with former executive Sean Daley that went on for more than three years. The settlement will be paid to Daley in cash and shares over a three year period.

Environmental Recycling Technologies has developed the Powder Impression Moulding (PIM) process which converts mixed waste plastics into commercially viable products. The company exploits the patented intellectual property through a series of licensing agreements with third parties.

Daley was CEO of the company’s Central Asian operations before he was dismissed in 2006. In June 2009, Daley was awarded compensation, which Environmental Recycling Technologies unsuccessfully appealed. Consequently, both parties have been in mediation, the company said that today’s settlement with Daley is confidential; however it has confirmed certain details. Of the total settlement to be paid over the three years, approximately half the settlement is to be paid in cash, which the company previously made provision for in 2009’s interim report.  The remainder will be satisfied in shares, which are subject to a share sale restraint agreement. 

Under the terms of the share settlement, Mr Daley will immediately be issued 10 million ordinary shares which are to be issued at par value. The cash portion of the settlement will be satisfied from the company's existing resources and future expected cash flow.

The settlement provides that the respective parties have withdrawn all complaints and all allegations about each other and have agreed not to comment on the matter any further. Environmental Recycling Technologies said that it is in the company's best interests to settle with Daley and focus its efforts on the commercialisation of the PIM Process.

http://www.proactiveinvestors.co.uk/companies/news/12882/environmental-recycling-technologies-settles-litigation-with-former-unit-ceo-12882.html