The new board of ARC Capital has made an announcement today about the litigation that the fund is involved in. So we don’t inadvertently say the wrong thing, here is their announcement in full:
“Independent Legal Review
On 24 December 2014, Cielo Overseas Limited (“Cielo”), ARCH’s majority shareholder, released an announcement in which it confirmed that it had lodged a requisition notice requesting that the ARCH Board convene a general meeting of ARCH so that resolutions to remove ARCH’s then board of directors and appoint new directors of the Company could be considered by ARCH’s shareholders. The general meeting was held on 2 February 2015 and at the meeting the then ARCH directors were removed and the candidates proposed by Cielo were elected as directors.
Following their appointment the new directors commenced a review of ARCH’s affairs; in particular they commenced a review of the various elements of litigation with which ARCH was involved concerning its investment portfolio. For the avoidance of doubt, the new Board has not ceased or delayed any of the litigation that ARCH had commenced and has instructed its legal advisers to continue to pursue the various claims fully.
When the lodging of the requisition notice was announced by Cielo, Cielo stated that the proposed board intended, once appointed, to, inter alia, review the past actions of the former investment manager, ARC Capital Partners Limited, to determine whether any further action was necessary.
As part of their review of ARCH’s affairs following their appointment, the new directors have received a full briefing from the Company’s legal advisers on the legal action commenced in 2014 against the former manager in respect of the Orient Home investment and resolved to continue to pursue this claim. The directors are however conscious of Cielo’s statement that there would be a review of the past actions of the former investment manager and they have therefore resolved to initiate an independent review of ARCH’s litigation in the United Kingdom in respect of the Orient Home investment. Accordingly, the Board has appointed leading international law firm Baker & McKenzie LLP (“Baker & McKenzie”) to undertake the review.
As part of its review, Baker & McKenzie has been tasked with undertaking an independent review of ARCH’s claim in the English High Court against ARC Capital Partners Limited concerning Orient Home and providing an opinion on the reasonableness of pursuing such claim.
It should be noted that nothing herein is, or is intended to be, a waiver of legal professional privilege.”
And yesterday ARC announced that the Beijing Second Intermediate Court rejected the HNA Group’s claim to set aside the arbitral award with respect to Jiadeli. The Court’s ruling on this matter is apparently final. They say their legal advisers are currently liaising with the Shanghai First Intermediate Court to push forward the enforcement of the arbitral award.
ARCH : ARC Capital – the new board speaks