Basil Brookes, former finance director of Maxwell Communication Corporation, the main public company in the Maxwell group, is dropping a pounds 300,000 lawsuit against company administrators appointed from Price Waterhouse. One of the administrators said an out-of-court settlement was reached, but declined to give details. The lawsuit was filed following a ruling in March by the House of Lords that administrators and receivers who kept employees on for more than 14 days after firms went bust were liable for severance pay. MCC collapsed after Robert Maxwell died in November 1991.
Brookes has testified since May this year at the fraud trial of Kevin and Ian Maxwell, Robert Maxwell's youngest sons. The trial has no connection with Brookes' lawsuit.
Maxwell trial, page 17