Last-minute R20m deal cuts short LeisureNet case
LeisureNets lawyers and 10 non-executive directors facing a R1.2bn civil liability claim yesterday thrashed out a last-minute out-of-court settlement, which according to a Business Day report saved more than R25m in potential legal costs.
The case was to have started before Judge Deon van Zyl yesterday, with 16 weeks set aside to hear evidence. It was, however, postponed until today as lawyers for both parties with the involvement of international insurance company AIG sorted out the wording and amount of a settlement, believed to be between R15m and R20m. Details will be confirmed today in the Cape High Court. Although the settlement figure falls short of the R1.2bn debt initially claimed, the report suggests agreement to pay the amount could also signal acceptance by the directors of some form of corporate governance responsibility on behalf of the collapsed company. Full Business Day report