Afren has successfully secured, from its former CEO, Osman Shahenshah, and former COO, Shahid Ullah, a cash payment of US$17.1mn in relation to payments made to them that were not authorised by the Board, and as first announced by the Company on 31 July 2014.
In addition, the Company has secured a further US$3mn in respect of the costs to the Company relating to independent reviews conducted by Willkie, Farr & Gallagher, KPMG and certain legal costs. Mr Shahenshah and Mr Ullah have also granted a non-competition covenant in favour of Afren.
Afren has entered in to settlement agreements with Mr Shahenshah and Mr Ullah which release them of claims relating to the unauthorised payments. As a result of such settlement, the Company has agreed not to pursue legal proceedings against Mr Shahenshah and Mr Ullah in connection with the claims relating to the unauthorised payments.