An advertising company has settled its RM546 million suit against the Barisan Nasional (BN) out of court.

High Court judge Alizatul Khair Osman was informed of the settlement by Katherine Kohlhoff Durai, counsel for the company, Pentas Permata Sdn Bhd (PPSB), in his chambers today.

Abu Bakar Isa Ramat, counsel for the BN, told reporters that Alizatul allowed the matter to be settled without liberty to re-file.

Another BN counsel, Mohd Hafarizam Harun, said the quantum of settlement was still being discussed but it would not exceed 0.01 per cent in ex-gratia payment.

That should come up to a payout of no more than RM5.46 million.

He said he was relieved that such a large claim was settled without any judgment on liability.

Pentas Permata filed the suit against the BN on Dec 7, 2007, for terminating a contract with it, dated Jan 5, 2006, for the supply and installation of advertising boards in open areas to promote the BN in the general election.

The company, which was appointed as an agent to install the boards, named the BN, represented by its executive secretary,  Yaakob Mohammad, as defendant.

- Bernama