Quantum Blockchain settles with some Sipiem defendants

16th May 2024 16:37

(Sharecast News) - Quantum Blockchain Technologies announced a significant development in its ongoing legal case involving its wholly-owned subsidiary Clear Leisure 2017, and Sipiem in Liquidazione, on Thursday.

The AIM-traded company said it had reached a preliminary settlement with some defendants in the Sipiem case, and acquired additional claims collection rights.

It said the first settlement agreement had been finalised between CL17 and certain Sipiem case defendants.

At the same time, CL17 had negotiated with Sipiem's receiver to acquire the right to receive 30% of any collected sums.

The acquisition would ensures that the company would fully retain all future judgement debt and settlement funds collected by CL17.

Initially, in 2019, CL17 purchased the claims rights from Sipiem's liquidator for €50,000, with €30,000 held in escrow, plus 30% of any net sums collected, contingent on a ruling against the defendants.

In October 2022, the Venice Court ruled in favour of CL17, awarding €6.275m plus interest and inflation adjustments to be paid by the defendants.

However, in February 2023, the defendants appealed the ruling and sought to freeze collection actions by CL17 pending the appeal's outcome.

The court partially granted this request, excluding the main defendant and one former director from the freeze.

Recently, most defendants protected by the February 2023 order proposed a settlement to CL17, contingent on the receiver waiving potential civil and criminal claims against them.

Following negotiations, the receiver, with the Rovigo Insolvency Court judge's approval, agreed to sell CL17 its rights to 30% of any collected sums from the Sipiem case for a fixed €170,000.

As a result, CL17 had settled with the specific defendants for €0.7m, payable in two instalments within 20 and 30 days from the preliminary settlement agreement executed on 29 April.

The settlement remained subject to the Venice Court of Appeal's approval.

If the court did not set a hearing date to approve the settlement before ruling on the appeal, the preliminary agreement would be void.

The remaining value of the judgement, pending court confirmation of the settlement, was around €5.575m plus interest and inflation adjustments.

Quantum Blockchain said CL17 was continuing its efforts to collect that amount from the main defendant and another defendant not included in the settlement.

"We are very happy with the outcome of this double negotiation with the defendants and the receiver, which allows us to cash in the first tangible result of the Sipiem litigation and now gives us the rights to all funds recovered, namely the €700,000 of this agreement and the balance amounting to €5.575m plus interest and augmentation for inflation," said executive chairman Francesco Gardin.

"This provides us with an improved negotiating position regarding the collection of the remaining amount due to us."

At 1618 BST, shares in Quantum Blockchain Technologies were up 4.41% at 1.02p.

Reporting by Josh White for Sharecast.com.