16th Jan 2006 16:54
Hidong Estate PLC16 January 2006 Hidong Estate PLC Litigation re proposed sale of Plantation For immediate release 16 January 2006 Further to the announcement of the proposed disposal of the Company's Plantationon 14 October 2005 and its subsequent approval by the Estate Land Board(referred to in the interim statement announced on 28 December 2005), theDirectors announce that the Company, whilst being in the process of preparingfor an Extraordinary General Meeting to seek shareholders' approval on thetransaction, has been served with an ex parte mandatory injunction dated 6January 2005 obtained by the Purchaser in the High Court of Malaya at Seremban.The order however was only served on the Company on 13 January 2006. The saidorder provides that the Purchaser can pay the Balance Purchase Price of RM 8.77million into court, which it did on the 12 January 2006, whereupon the Companyis required to give vacant possession of the Land and buildings and the originaltitle thereto to the Purchaser within 48 hours, under threat of contemptproceedings in the event of a non compliance. The order also provided that theCompany can only apply for receipt of the Balance Purchase Price from the courtafter registration of the transfer to the Purchaser and its charge to itsfinancier. The above are material contradictions of the terms of the sale andpurchase agreement. The Company's solicitors have immediately taken up the matter with the Purchaserand its solicitors and the matter is ongoing. Further announcements will be madeas appropriate. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hidong Est.