Today's Information |
Provided by: Enterex International Limited | |||||
SEQ_NO | 1 | Date of announcement | 2022/01/24 | Time of announcement | 17:21:20 |
Subject | The board of directors resolved its subsidiary Fruitage voluntary negotiates the subordinated claims against APDI to get the maximum distributable claims. | ||||
Date of events | 2022/01/24 | To which item it meets | paragraph 51 | ||
Statement | 1.Date of occurrence of the event:2022/01/24 2.Company name:Fruitage International Co., Ltd.(hereafter referred to as ��Fruitage��) 3.Relationship to the Company (please enter ��head office�� or ��subsidiaries��):subsidiaries 4.Reciprocal shareholding ratios:100% 5.Cause of occurrence: 1)According to the understanding of US lawyers, APDI Liquidation LLC. (formerly known as Automotive Parts Distribution International LLC. hereinafter referred to as APDI), a subsidiary of the Company in the reorganization process, currently has total assets of approximately US$1 million to US$1.5 million and liabilities of approximately US$29 million, of which USD 24 million is an account payable to Fruitage. APDI's current liquidation plan classifies the Fruitage claim as an insider claim and reserves the right of action. 2)According to the experience of American lawyers, since Fruitage is a shareholder of APDI and is the largest single creditor of APDI, if Fruitage's creditor's rights are allowed to participate in the distribution in full, other creditors will hardly be able to pay, so the U.S. Bankruptcy Court is likely to rule that Fruitage's creditor's right is subordination based on the principle of equity. Since APDI does not have enough assets to pay off all its liabilities, the so-called subordination is actually a waiver. 3)If Fruitage doesn't try to negotiate subordination, there may be litigation disputes, Fruitage will have to spend a lot of litigation-related costs; APDI will also pay high lawyer fees, plus the continuing costs incurred during the litigation process, it will lead to a significant reduction in APDI's assets regardless of whether Fruitage wins the lawsuit in the future; furthermore, it may not be possible to obtain a favorable ruling for Fruitage. 4) Based on the American lawyers experiences, the lawyer suggest Fruitage seek to negotiate the subordination of up to 50%. 6.Countermeasures:After referring to the opinions of American lawyers, the board of directors of the company passed a resolution on January 24, 2022 to authorize the chairman of Fruitage to entrust lawyers to negotiate with APDI within the range of up to 50% of the subordinated claims. 7.Any other matters that need to be specified:None |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Enterex International Ltd. published this content on 24 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 09:33:00 UTC.