Green Packet settles with Intel on suit, has until Sept 30 to pay up

PETALING JAYA: Green Packet Bhd has decided to withdraw its appeal against a court ruling which ordered it to pay RM60 million, as well as an interest of 1.5% per month from Nov 28, 2012 until the date of full settlement, to Intel Capital Corp.
In a filing with Bursa Malaysia yesterday, the group said it had filed a notice of discontinuance of appeal following the signing of an agreement with Intel Corp on Tuesday.Under the agreement, Green Packet has until Oct 31, 2014 to pay Intel.
Upon receipt of the full amount, 200,000 Class B irredeemable convertible preference shares of RM0.10 are to be transferred to the group.
Intel had filed a suit against Green Packet in September 2013 claiming that Green Packet had not fulfilled its obligations under a put option and tag-along rights agreement (Pota) that was executed in July 2010.
Under the Pota, Green Packet is to acquire all of Packet One Networks (M) Sdn Bhd (P1) Class B irredeemable convertible preference shares of RM0.10 each (Class B ICPS) if Intel exercised its right to exchange the RM50mil guaranteed redeemable convertible exchangeable bonds (GCEB). The GCEB are to be exchanged into Class B ICPS that Green Packet is to purchase for RM60mil.
Green Packet had initially fought the suit stating that Intel's exercise of the Pota was flawed and that the terms and conditions of the Pota may not be valid.
Meanwhile, on July 31, 2014 Green Packet said the Longstop Date for Telekom Malaysia Bhd's deal to pay RM560 million for a 57% stake in P1 and exchangeable bonds from Green Packet had been extended to Sept 30, 2014.