(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, May 26 (KUNA) - Kuwait's Agility, a leading global logistics provider, today announced a global settlement in the case involving the US government food-supply contracts, known as "Prime Vendor," that the company held from 2003 to 2010.
"The settlement affirms our long-standing view that Agility acted transparently and responsibly as it carried out to near-perfection the extraordinarily complex mission to deliver food and related materials to US troops in an active war zone," Agility CEO Tarek Sultan said.
The contracts spanned seven years, involved nearly 200,000 invoices to the US government, and were valued at over USD 8.6 billion. Agility settled on terms that preserve and validate the company's reputation for integrity.
In the criminal portion of the case, Agility announced earlier that it has agreed to plead to a misdemeanor in connection with a single invoice valued at USD 551. The misdemeanor is a minor offense, unrelated to any of the original criminal charges. It requires Agility to pay a maximum of USD 551 in restitution, but carries with it no criminal fine.
In the parallel civil proceedings of the case, the company has agreed to pay USD 95 million in cash. In addition, Agility and the US government have agreed to mutual releases of all outstanding contract claims related to the food-supply contracts.
The agreement will resolve all legal issues related to these contracts for Agility employees, directors, officers and affiliates. The terms of the settlement are subject to final court approval.
The settlement will allow Agility to resume the pursuit of new US government contracts. Under the terms of the settlement, the US government has agreed to remove Agility and all of its subsidiaries and affiliates from the list of suspended companies on its System for Award Management (SAM) database, formerly known as the Excluded Parties List System (EPLS), within 60 days.
"Today's settlement removes uncertainty for investors and lenders, ends costly litigation, and opens a pipeline of potential government and commercial contracting opportunities," Sultan said.
"Agility has a healthy balance sheet and low net debt," Sultan said. "The company can meet its obligations under the settlement without jeopardizing its current investments or its future growth. By bringing the case to an end, we have the ability to unlock additional value for shareholders." (end) fnk.ibi
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