ADA-ES Announces Settlement with Energy Capital Partners
ADA-ES, Inc. (NASDAQ: ADES) today announced that it has entered into an Indemnity Settlement Agreement with Energy Capital Partners LP and its affiliates and ADA Carbon Solutions, LLC and certain of ACS' affiliates pursuant to which the parties have agreed to settle certain indemnity claims arising out of the litigation between Norit Americas, Inc. and Norit International N.V. f/k/a Norit N.V., ECP and the AC JV Entities in Texas and New Jersey and the related arbitration based on ADA's indemnity obligations under the Joint Development Agreement between ADA and ECP dated as of October 1, 2008.
The primary litigation took place before an arbitration panel, which rendered its Final Award in October 2011, confirming the prior settlement agreements reached with Norit.
Pursuant to the Indemnity Settlement Agreement, ADA agreed to settle certain indemnity claims asserted against the Company for legal fees, costs and expenses arising out of the Norit Litigation in the amount of approximately $33 million and certain other losses. To settle the claims, ADA paid certain AC JV Entities a cash payment of $2.1 million on November 28, 2011, agreed to $1.5 million in additional payments, agreed to secure the payment of future royalty amounts due to Norit under the Final Award and settlement agreements with Norit through letters of credit and relinquished all of its 21.3% equity interests in the AC JV Entities which operate an activated carbon plant located in Red River, Louisiana.
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