Afren plc has announced that it has secured, from its former CEO, Osman Shahenshah, and former COO, Shahid Ullah, a cash payment of US$17.1 million in relation to payments made to them that were not authorized 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. Shahenshah and Ullah have also granted a non-competition covenant in favor of Afren.
Afren has entered in to settlement agreements with Shahenshah and Ullah which release them of claims relating to the unauthorized payments.
As a result of such settlement, the Company has agreed not to pursue legal proceedings against Shahenshah and Ullah in connection with the claims relating to the unauthorized payments.