Jan 24 (Reuters) - Tasfoods Ltd TFL.AX :
* Letter to shareholders re litigation settlement
* Says prospects of obtaining specific performance of the company's agreement
to acquire the vdl assets have diminished
* Says continuing to explore other acquisitions consistent with its strategy
* Co's application for leave to appeal to court of appeal of supreme court of
Victoria and trial scheduled to commence on 22 February 2016 will be
discontinued
* Under the terms of settlement, the company is entitled to receive a cash
payment of $1.3 million from tlc
* Source text