US step-down subsidiary signs Forbearance Agreement; to accept US$1.75 million against US$2.31 million judgments
ADF Foods (USA) Ltd., the step-down wholly owned subsidiary, executed a Forbearance Agreement dated 9th October, 2026 with Ascot Valley Foods Ltd. and its affiliates.
- Aggregate judgments in favour
- approximately US$ 2.31 million plus interest
- Amount conditionally agreed to accept
- US$ 1.75 million plus interest
- Payment terms
- Initial US$450,000 received; balance US$1.30 million plus interest in monthly instalments of at least US$25,000 over a maximum of 52…
What happened
ADF Foods (USA) Ltd., the step-down wholly owned subsidiary, has executed a Forbearance Agreement dated 9th October, 2026 with Ascot Valley Foods Ltd. and its affiliates. This relates to litigation before the United States District Court, Southern District of New York.
What the agreement says
- The monetary judgments in favour of the subsidiary aggregate approximately US$ 2.31 million plus applicable interest.
- Under the agreement, the subsidiary has conditionally agreed to accept US$ 1.75 million plus applicable interest towards satisfaction of these judgments.
- An initial payment of US$450,000 was received by the subsidiary on 9th October, 2026.
- The balance of US$1.30 million plus interest is payable in monthly instalments of at least US$25,000, over a maximum of 52 months, commencing November 2026.
- Ascot is required to withdraw its appeal.
What stays protected
The permanent injunction protecting the subsidiary's proprietary recipes and trade secrets remains fully effective.
Conditions to note
- Satisfaction of the judgments is conditional upon full payment under the agreement.
- The subsidiary retains its rights to enforce the original judgments, after crediting payments received, in the event of default.
How to read this
The update describes receipt of the initial payment as progress in monetary recovery under a structured payment framework, while preserving the subsidiary's intellectual property protection. The amount the subsidiary has conditionally agreed to accept is lower than the aggregate judgments, and recovery under the agreement depends on instalments being paid over time.
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More numbers
- Monetary judgments in favour of the subsidiaryUS$ 2.31 million
- Amount conditionally agreed to be acceptedUS$ 1.75 million
- Initial payment received by the subsidiaryUS$450,000
- Balance payableUS$1.30 million
- Minimum monthly instalmentUS$25,000
- Maximum instalment period52 months
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