StockMarketWire.com - Treatt CEO Daemmon Reeve said he is extremely disappointed with the outcome of an earn-out dispute relating to Earthoil.

The Expert Determination process had now concluded and the value of the Earn-out has been put at £970,648.

"Whilst we are pleased that the expert has awarded significantly less than the Sellers claimed, having taken legal and professional advice throughout, including Counsel's opinion, the Board is extremely disappointed with this outcome," said Reeve.

"The Earn-out is subject to deductions of £250,000 in respect of a cash advance made on completion of the purchase in April 2008 and £318,000 in respect of a settled claim under the warranties provided by the Sellers in April 2008.

"It was also determined that a contribution of £11,730 be made towards the Sellers' fees for the Expert Determination process, which are to be split 45%:55% in their favour. This leaves a balancing payment of £414,378 due, which will be made to the Sellers in due course.

"Whilst this resolves the majority of the claim issued by the Sellers, there remain some outstanding issues, which are to be determined by the Court. The Sellers outstanding claims, the value of which is £693,888, relate to alleged breaches of contract, which are strenuously denied.

"Consequently, final resolution of this matter and judgment in respect of the costs of this litigation, is unlikely to be before 2017."




At 9:25am: [LON:TET] Treatt PLC share price was -3p at 172p



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