Mercury Air Group, parent of Mercury Air Cargo, announced that it entered into a settlement agreement relating to litigation with J O Hambro Capital Management Group Ltd.
The air-cargo company said it has agreed to repurchase 343,600 shares of its common stock and pay certain costs for the mutual release of claims.
Mercury also will issue notes to J O Hambro and its affiliates in the aggregate amount of $3.586 million. Mercury said its senior and subordinated lenders consented to the terms and conditions of the settlement agreement.
Mercury, of Los Angeles, also has dropped a complaint against J O Hambro Management Group, among others, previously filed in the U.S. District Court for the Central District of California.
Mercury's Chief Executive, Joseph A. Czyzyk, said in a statement, "Mercury has no intention of pursuing claims asserted against J O Hambro and its affiliates and dismissal of the claims was the appropriate step to take, as upon further investigation of such claims we found them to be unworthy of pursuing. The estimated legal expenses in connection with our claim and additional anticipated protracted litigation necessitated this decision."