August 1 2014 Latest news:
Ben Woods, Business writer
Saturday, May 24, 2014
The former top boss of Group Lotus and the Norfolk car makers Malaysian owners have brought to an end their High Court battle.
Ex-chief executive Dany Bahar and DRB-Hicom have finalised a settlement agreement which will see both parties dropping their claims against each other.
The announcement can be made after owners of the Hethel-based sports car manufacturer told shareholders that a deal had been reached which would not have a “major impact” on DRB-Hicom’s financial performance. But the Malaysian company has refused to disclose the finer details surrounding the agreement.
Mr Bahar was dramatically sacked in June 2012 sparking High Court claims that he was owed £6,737,240 under the terms of early termination in his contract – as well as damages and costs.
But DRB-Hicom said at the time of his departure that Mr Bahar had been removed from his post following an audit into the running of the company and an unspecified complaint against him by the conglomerate.
In a statement to shareholders, DRB-Hicom said: “The company wishes to announce that the parties involved in the legal suit have signed a settlement agreement and release on May 14 and have agreed to withdraw their claims against each other.
“The above arrangement is not expected to have any major impact on the financial or operations of the group.”
The dismissal of Mr Bahar paved the way for DRB-Hicom to parachute in its head of vehicle manufacturing projects Aslam Farikullah as Group Lotus chief operating officer.
And earlier this month Proton announced the appointment of Jean-Marc Gales as the new chief executive officer of Group Lotus.
The EDP Top100 company was awarded more than £10m from the government’s Regional Growth Fund last year to drive job creation and help fund new projects.
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A father and son who joined forces to set up their own business are hoping to push the boundaries as their company goes from strength to strength.