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Greenstar settles action with former US unit boss

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Waste firm Greenstar has settled its lawsuit

Waste firm Greenstar has settled its lawsuit

Waste firm Greenstar has settled its lawsuit

Waste firm Greenstar and the former chief executive of its US business have settled an acrimonious $100m (€74m) lawsuit. Details of the settlement haven't been disclosed.

The legal action was sparked off last year when Matthew Delnick sued Greenstar's US division for $15m. He had been appointed chief executive of the unit in 2010 but was fired in early 2012.

He took the action against Greenstar – which was unconnected structurally to the Irish arm – because he claimed he would have been due a multi-million dollar payout if the US division had been sold under an agreement he helped to engineer.

He'd been told by the Greenstar owner NTR in 2010 that it could no longer provide the US arm with capital. Mr Delnick then suggested NTR see a buyer for the American Greenstar business.

The former chief executive claimed in court he helped to secure an indication of interest from US firm Waste Management to buy American Greenstar operation for between $400m and $420m – an offer that he alleged later lapsed.

NTR has since sold its Greenstar business in the US to Waste Management for a total of $180m (€133m). Excluding debt and other costs, the net figure was $129m, with up to an additional $40m payable by 2018 subject to certain performance criteria being achieved.

NTR's Greenstar business in Ireland went into receivership last year and was sold this year to private equity firm Cerberus.

Greenstar's US division had countersued Mr Delnick for $100m, claiming he had attempted to push through a sale "for personal gain".

It also alleged he had released in public court filings what it deemed to be confidential information regarding Greenstar's operations and did so "deliberately and maliciously".

IRREPARABLE

The company argued that the disclosures caused Greenstar "substantial monetary damages and irreparable harm".

The trial had been slated to begin next month.

But court documents indicate the case has been settled. Each side has agreed to shoulder their own legal fees.

NTR has had a troubled few years, having written off large investments and radically narrowing its asset focus.

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The company recently said it would return €100m to shareholders after completing a turnaround plan ahead of schedule. That would see chairman Tom Roche and his family, who own 40pc of NTR, benefit significantly.

Investment group One51 owns just over 24pc of NTR.

NTR chief executive Rosheen McGuckian said the company would focus on investing in late stage wind energy projects in Ireland and the UK.


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