At a pre-trial hearing last month, Are claimed that the deal it signed in 2008 with the island’s renewable energy commission to lease seabed blocks was invalid and that payments amounting to £3.2m. should be returned.
A trial was set for this week, but the two sides have announced they have reached an agreement away from the courtroom.
‘Acre and Are have agreed terms of settlement in respect of the court proceedings which were due to be heard in the Alderney Court commencing on 17 September 2018,’ they said in a joint media release.
‘The cases arose from an agreement and statutory licence entered into in 2008 and involved claims by Acre for outstanding monies due following the termination of the agreement and revocation of the statutory licence in 2017 and counter-claim and statutory appeal by Are.
‘Both parties are pleased that, after a lengthy period of negotiation, a mutually acceptable agreement has been reached. Are have agreed to withdraw the counter-claim and statutory appeal and terms have been agreed between the parties for the payment of the full amount of Acre’s money claim, including costs.
‘This is a private settlement agreement and there will be no further public statements on this matter by either party as the terms of the settlement include a confidentiality agreement.’
A spokesman for the States of Alderney welcomed the settlement.
‘This agreement provides clarity that the statutory licence entered into in 2008 is no longer in place and the States of Alderney and Acre can now consider how best to develop the tidal resources in Alderney’s waters for the future,’ they said.
‘The States of Alderney also welcomes the fact that all monies owed to Acre under the commercial agreement will be paid in full under the terms of the settlement.’