News

Hanco Litigation Agreement

23 October 2007

Cashbox, the UK ATM provider, today announces that it has reached agreement on a full and final settlement (the "Settlement") with Hanco ATM Systems Limited ("Hanco") concluding the litigation brought by Hanco against the Cashbox ATM Systems Limited (the "Company's Subsidiary").

Under the terms of the Settlement, the Company's Subsidiary has agreed to pay £1.8 million to Hanco together with interest accruing daily if payment is deferred. The Company's Subsidiary has the option of deferring payment of the £1.8 million for up to 2 years on the basis that interest will accrue on the settlement sum at a rate of 5 per cent. per annum for the first year and at 20 per cent. per annum thereafter. Payment of any interest may also be deferred for up to 2 years. The obligations of the Company's Subsidiary under the Settlement are guaranteed by the Company.

As previously announced, the Company's Subsidiary has the benefit of a joint and several indemnity in connection with this litigation, which the Company and its subsidiary propose to enforce. In accepting the terms of the Settlement, Hanco foregoes the right to bring any further claims against the Company or its subsidiary in relation to the subject matter of the proceedings.

John Maples, Chairman, of the Company, commented:

"I am pleased that both sides have been able to reach agreement and bring this matter to a close.  The Company is currently at a key stage of its growth and one that demands the full attention of its senior management. This settlement draws to a close one of the major issues that Ciaran Morton and David Auger inherited on joining the Company in April 2007.

With the recent funding secured through our credit agreement with Bank of Scotland, the management team is now able to fully concentrate on the rapid deployment of ATMs across our estate and drive this business forwards towards profitability."

For further information:

E-mail this link to a friend

To e-mail this link to a friend, please complete the details below and click send.

Back to 2007 News Archive