Jamaica Broilers Group Limited has advised that at a meeting held, on Thursday, October 4, 2007 in Paris, France, between the Group’s Senior Vice President Mr. Christopher Levy and the Principals of the Company that defaulted on the fixed priced contract for the September Shipment of Ethanol, an agreement was reached resulting in a final settlement of US$ 1.45 million which represents 75% of the loss incurred by JB Ethanol Limited consequent on their default of that contract. Arbitration proceedings have therefore been avoided.
This settlement confirms our conviction as previously reported that based on the reputation and integrity of the customer, they would have performed under that contract.
This favourable development will result in a reduction in the US$ 3 million projected negative impact on the Group’s overall performance, for the second quarter, as reported in the profit warning issued on Friday, September 28.
