Following the Market Update issued on 20 December 2016 confirming that ZCCM-IH was successful in its application for default judgment against KCM, ZCCM-IH wishes to provide further details on the matter.
Pursuant to the judgment of the English Court, KCM was ordered to pay ZCCM-IH, by 13 January 2017:
- the sum of approximately US$103 million in respect of outstanding sums owed to ZCCMIH under a Settlement Agreement (the “Judgment Sum”); and
- the sum of GBP 180,000 in respect of the costs incurred by ZCCM-IH in pursuing its application before the English court.
Further, ZCCM-IH hereby advises that:
- KCM paid the sum of GBP 180,000 on 13 January 2017 in accordance with the Court’s Judgment; and
- ZCCM-IH and KCM have agreed to amend the dates by which KCM will make payments in respect of the Judgment Sum (which sum remains outstanding as ordered by the English Court).
The agreement to amend the dates by which KCM will make payments in respect of the outstanding sums owed to ZCCM-IH will be recorded in a Consent Order of the English Court.
Pursuant to the terms of the Consent Order, KCM will pay ZCCM-IH:
- US$ 20 million on 31 January 2017;
- US$ 22 million on 28 February 2017; and
- US$ 2,550,000 at the end of every month (commencing on 31 March 2017) until such time as the Judgment Sum has been paid in full.
The English court’s further directions to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement remain unchanged. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM. A further announcement will be made at that time.
Issued in Lusaka, Zambia on 17 January 2017
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First Issued on 17 January 2017