Following the allegations made on December 17, 2015 by the Brazilian Public Prosecutor's Office (Ministério Público Federal - "MPF") regarding SBM Offshore's CEO, Mr. Bruno Chabas, and a member of the Company's Supervisory Board, Mr. Sietze Hepkema, the Supervisory Board of SBM Offshore issued a statement of support with respect to both Board Members on December 21, 2015.
On January 15, 2016, the Company was informed that the judge in Brazil referred the accusations with regard to Mr. Chabas and Mr. Hepkema back to the Public Prosecutor to propose an out-of-court settlement, on a no admission of guilt basis, as is common for misdemeanors of the kind alleged.
Messrs. Chabas and Hepkema and the Management and Supervisory Boards have considered the Public Prosecutor's proposal for an out-of-court settlement and decided to accept it. This results in the payment of 250.000 Brazilian Reals (approximately US$60,000) each, which the Company will pay.
The Company emphasizes that this settlement does not involve an admission of guilt and remains of the opinion that the accusations are without merit. However, SBM Offshore also believes that accepting the settlement offers a pragmatic opportunity to expeditiously resolve this matter that avoids long and costly legal proceedings and allows the Company's management team to concentrate on the business.
The Supervisory Board of the Company affirms its earlier statement of support of Messrs. Chabas and Hepkema.
The settlement with the Public Prosecutor reached on January 22, 2016 is subject to confirmation by the judge handling the case. The timing of the confirmation has yet to be established.