3S Photonics, Avanex settle differences

15 JULY 2008 -- While neither side admits liability, the two parties have agreed to a settlement on payables, receivables, and a release by both parties of all claims asserted against each other.

July 15, 2008

2 min read

15 JULY 2008 -- 3S Photonics (search for 3S Photonics) and Avanex (search for Avanex) say they have resolved their contractual disputes. While neither side admits liability, the two parties have agreed to a settlement on payables, receivables, and a release by both parties of all claims asserted against each other, including the dismissal of legal actions taken in New York, California, and the Commercial Court of Evry, France. With this resolution there will be no further litigation between 3S PHOTONICS and Avanex, the companies say.

3S Photonics was created in April 2007 when Avanex sold its Avanex France operations to the French company's director, Didier Sauvage, and Global Research Co. The assets originated with Alcatel Optronics, which Avanex purchased in 2003. Avanex provided 3S Photonics with $17.3 million for anticipated operating capital. It also retained a 10% stake as well as "privileged commercial partnerships," in the words of a press release 3S Photonics issued upon its founding.

However, 3S Photonics and its former parent began squabbling later in the year. Among other things Avanex alleged that the French firm breached various obligations, in particular that 3S Photonics prematurely terminated its exclusive distribution agreement with Avanex.

"3S Photonics is satisfied to have reached this settlement. We plan new business opportunities and are looking forward to starting a new collaboration with Avanex," said Alexandre Krivine, chairman and CEO of 3S Photonics.

Dr. Giovanni Barbarossa, Avanex's interim CEO, commented: "Avanex is pleased to have reached this agreement with 3S Photonics to put this matter behind us. We look forward to working with 3S Photonics again in the future."

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