UTStarcom (UTSI) Enters Settlement Agreement with PCD, LLC
UTStarcom, Inc. (Nasdaq: UTSI) today announced that it has entered into a settlement agreement with Personal Communications Devices, LLC to satisfy potential liabilities relating to certain inventory delivered to PCD pursuant to the Supplier Agreement and the July 2008 Merger Agreement and to waive certain rights of the company relating to the July 2008 Merger Agreement.
Under the settlement agreement the company waives its right to benefit from a three-year earn out provision and its right to make future investments in PCD, which were part of the July 2008 Merger Agreement. Also, under the settlement agreement, the company has granted to Personal Communications Devices Holdings, LLC, the parent company of PCD, an option to repurchase its current equity position in PCD Holdings at its original investment cost of $1.6 million. As anticipated, the $10 million held in escrow since the July 2008 merger will be released to the company in July 2009.
In addition, as part of the settlement, UTStarcom will pay PCD $11.1 million to satisfy potential liabilities relating to certain inventory delivered to PCD. PCD has agreed to continue to sell the company's remaining inventory.
Create E-mail AlertRelated Categories
Corporate NewsStocks Mentioned
+0.08Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
