Jamaica Broilers Group Ltd.(JBG)- Acquisition

In 1998, a Cogeneration facility commenced operation adjacent to the Jamaica Broilers Processing Plant with the plant acting as host for the supply of power and thermal energy. The Cogeneration facility was owned by a limited partnership in which Jamaica Broilers was a minority limited partner. After operating for three years, the plant became unreliable and failed to operate to specifications and one of the general partners in the cogeneration partnership filed for bankruptcy. Subsequently, JBG filed a lawsuit, in the United States District Court for the Western District of Pennsylvania alleging various claims and seeking damages for the losses sustained. JBG now reports that it has reached a settlement of the Pennsylvania Lawsuit. That settlement, together with Jamaica Broilers’ previous acquisition of CE Jamaica LLC, will result in Jamaica Broilers becoming the sole owner of the partnership that owns the cogeneration facility. In addition, Jamaica Broilers will receive the sum of US$2.3 million and has completed negotiations and paid US$ 3 million to purchase a financial note held by Teachers Insurance and Annuity Assn. of America secured against all of the assets of the Cogeneration facility.