According to reports, Agility asked U.S. Magistrate Christopher Hagy to reschedule today’s hearing. It has been the fifth time Agility requests the hearing to be rescheduled and it was postponed until February 8. However, judge Hagy wasn’t too happy as he reflected, “There’s a point at which this stops.” “It is our hope that it goes forward,” Assistant U.S. Attorney Barbara Nelan replied.
The reason Agility asked for the rescheduling is because of “ongoing negotiations” for a settlement. However, don’t completely bet on a settlement as Agility’s spokesman Dal Leibach revealed today that, “No agreement has been reached and there is no guarantee the discussions will result in an agreement.”
As a background, Agility was accused on November 17 in an $8.5Bn fraud and conspiracy case by the US government. The indictment will prevent Agility from bidding for contracts during the legal proceedings but the suspension doesn’t preclude it from completing current contracts. This is considered a severe blow for the company as it derives 75% of its EBIDTA from US government contracts (Cheuvreux estimates). Litigation risk is high as Agility stands to loss a minimum of approximately $136 million. In reaction, the share price has plummeted by more than 50% to KD0.600 fils from its last October levels of KD1.300.
Previous Related Articles:
1. Agility Indicted with $8.5B Fraud by US Government
http://www.alphadinar.com/2009/11/17/agility-indicted-with-8-5b-fraud-by-us/
2. Agility Fraud Case Implications
http://www.alphadinar.com/2009/11/18/agility-fraud-case-examined/ END
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