Updated 5.32pm - Added Keith Schembri comments

Allied Newspapers Limited and former managing director Adrian Hillman have reached a private agreement concerning any claims they have or may have had against each other.

In a statement, Allied Newspapers said that, as a result of the agreement, all litigation was being withdrawn.

On his part, it added, Mr Hillman thanked the company for the opportunity that was given to him to serve as managing director and expressed his satisfaction that the matter had come to a positive close.

In the wake of allegations by blogger Daphne Caruana Galizia, Mr Hillman offered his resignation on May 25, claiming constructive dismissal. He eventually demanded compensation in a case filed in front of the Industrial Tribunal.

In September, Allied Newspapers Ltd filed a judicial letter asking Mr Hillman to refund company money he used without authorisation.

Ms Caruana Galizia had alleged through a blog post that Mr Hillman had received secret payments from the Prime Minister's chief of staff, Keith Schembri, who owns Kasco Ltd, a paper supplier, for awarding work contracts at Progress Press to Kasco. Mr Hillman and Mr Schembri had denied the accusations. Their names had appeared in the Panama Papers, indicating they owned offshore companies in secretive jurisdictions.

'There was no wrongdoing' - Keith Schembri

In a statement issued by the Department of Information, Mr Schembri said that he welcomed news of the agreement. 

"Given that part of the claims attributed wrongdoing by Mr Hillman and companies belonging to my group, this result proves that there was no such wrongdoing as had been alleged.

"The dishonest and highly politicised campaign against me personally has been proved to be baseless.

"Now that this matter has been resolved, for the sake of transparency, I urge Allied Newspapers to publish its independent inquiry," he said.

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