Lawsuit update: Hanwell subsidiary settles

The settlement involves products that reference Rockport or trademarks.

The Board of Directors announced that Hanwell Holdings Limited’s wholly-owned subsidiary, D&P Lifestyle Pte. Ltd. has entered into a Mutual Release and Settlement Agreement with adidas International Trading B.V. and The Rockport Company, LLC.

Hanwell said:

The Agreement provides, inter alia, that (i) D&P may sell any products in its possession that reference Rockport or trademarks, bear logos or trademarks belonging to or associated with Rockport to any third parties in accordance with the terms of the Agreement and (ii) D&P, AIT and TRC do fully, finally and forever release and discharge each other and related parties and affiliates from the beginning of time to the date of the Agreement, including but not limited to those (a) relating in any way to all transactions, acts and omissions under or pursuant to the Distribution Agreements between the Parties, or (b) that were raised or could have been raised in the legal action by TRC against D&P in Suffolk Superior Court.

The Release shall not become effective until 6 months after the date of the Agreement, [7 September 2012 – to be confirmed and checking with Rockport] and only if each of the Parties shall not be in breach thereof. If D&P has not breached the terms of the Agreement within the 6 months of the Effective Date, the Parties will forthwith file documentation necessary to dismiss the Lawsuit.

The Company is presently unable to assess the effect on the consolidated net tangible assets per share and consolidated earnings per share of the Group for the current financial year ending 31 December 2012.