Aug 25, 2014. /Lesprom Network/. Xerium Technologies, Inc. has joined a tax amnesty program in Brazil in order to settle its outstanding Brazilian tax litigation matter. Taking part in the amnesty program will result in a tax charge during the 3Q of approximately $25.1 million, or approximately $1.63 per share, as the company said in the press release received by Lesprom Network.

The amount of the tax charge represents the settlement of the company's open tax assessment and the cost to settle the unassessed tax years of 2011 to the present. The tax charge will not impact the company's 3Q or full year Adjusted EBITDA figure.

Executive Vice President and CFO Clifford E. Pietrafitta said, "The company still believes the transactions that resulted in this tax assessment were executed legally and that we had a strong case. However, given the uncertainty inherent in litigation, particularly the length of time this case could have lingered in the Brazilian courts and the very real cost associated with continuing to fight it, we felt this option represented the best opportunity in the foreseeable future to mitigate our risk and to put this issue behind us."

Xerium financed the settlement through a draw of an additional $30 million of debt financing under the accordion feature of its term loan credit facility.

Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services.