Gilat Satellite Networks Ltd (Nasdaq: GILT | PowerRating) announced the signature of settlement agreements with each of Mivtach Shamir Holdings Ltd, LR Group Ltd, Gores Capital Partners II L.P and DGB Investments Inc against which Gilat had filed lawsuits in November 2008.
These lawsuits were filed by the company in connection with the termination of the Merger Agreement, dated 31 March 2008. The lawsuits were filed based on guarantees delivered by each of the defendants to cover their respective portion of the total amount of approximately USD47.0m.
The settlement agreements will result in the termination of all court proceedings filed by Gilat against each of the defendants, as well as general mutual waivers and releases provided by all parties, including the entities formed by the defendants to purchase Gilat.
Under the terms of the settlement agreement the defendants will pay Gilat an aggregate of approximately USD20m, over half of which will be paid by 1 October 2010 with the remainder to be paid in annual instalments ending in October 2013.
The settlement agreements were reached as part of mediation proceedings that began in 2009.