Statement from Mr Goodman's AIBP Group
The AIBP Group, ("the Group") the Minister for Enterprise Trade and Employment (formerly Industry and Commerce) and the Minister's agent, ICI, have agreed to settle two long running legal cases.
Both have as a background the Group's substantial contracts for the supply of beef to Iraq in the late 1980s and the financial and insurance arrangements relating to payment for the beef supplied.
The main proceedings arose from the Minister's cancellation in October 1989 of the Group's policy of Export Credit Insurance under which policy the Group was partly insured against non-payment by the Iraqi purchasers.
Under the terms now agreed, all claims and counterclaims will be dismissed. Each side will bear their own costs. The subsidiary action related to a complex transaction between Goodman Holdings (a Group company) and an unrelated beef supplier, Hibernia Meats/Dantean, for the sale of beef to Iraq. It involved the application of the Short Term Finance for Export Scheme offered by the Minister and operated and administered by ICI.
The Minister and ICI issued proceedings in 1991 seeking approximately €5 million from Goodman Holdings. Under the terms now agreed, these proceedings will also be dismissed without admission of liability and each side will bear their own costs. It has also been agreed that, to the extent that Goodman Holdings recover payment from the Iraqis in respect of these shipments, the State will be refunded.
The agreement to bring these two sets of proceedings to an end means that enormously costly and time-consuming hearings into events that occurred up to 14 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.