The Government has welcomed the decision on the part of Goodman Holdings to withdraw its legal action against the State relating to beef supplies to Iraq.
Legal proceedings were initiated against the State by the company in 1989 following a decision by the then Minister for Industry and Commerce, Mr Des O'Malley to cancel export credit insurance on the company's sales of beef to Iraq.
Approximately €100 million was claimed against the State, in addition to costs and damages.
The State has agreed to withdraw a related smaller action which it had initiated against the company for the recovery of approximately €5 million.
That amount was paid to a bank in 1990 in respect of shipment of beef to Iraq. It was paid at the time to that bank under the terms of a guarantee which had been underwritten by the State in accordance with the provisions of the Short Term Finance for Exports Scheme.
If, in the future, Iraq makes payments in respect of these shipments, the State will be refunded from payments received by the relevant bank.
Both sides have agreed to bear their own respective legal costs incurred to date in relation to both sets of proceedings.
A statement from Goodman Holdings' parent company, Anglo-Irish Beef Processors (AIBP), said the agreement with the State "means that enormously costly and time-consuming hearings into events that occurred up to fourteen years ago can be avoided.
"The settlement enables the management of Irish Food Processors Limited to focus their time and resources on their current and future business," the statement added.