Further re Court Action
2003年3月27日 - 1:29AM
RNSを含む英国規制内ニュース (英語)
RNS Number:2479J
International Real Estate Plc
26 March 2003
INTERNATIONAL REAL ESTATE TAKES ITS CASE AGAINST OAKTREE TO THE HOUSE OF LORDS
The Board of International Real Estate PLC ("IRE"), the property investment
company, is pleased to announce that in its continuing court action against a
subsidiary of Oaktree Capital Management LLC, Stratford UK Properties LLC
("Oaktree"), it has been granted leave to appeal to the House of Lords.
This follows the decision by the Court of Appeal in December 2002 reversing the
High Court's earlier decision in March 2002 in IRE's favour. IRE now seeks to
challenge the Court of Appeal's decision in the House of Lords. If IRE is
successful in the House of Lords, there will be no need for a full trial.
Background to the case
The dispute with Oaktree arises out of a joint venture partnership entered into
by IRE and Oaktree in 1998. In 2000, the partners entered into an agreement
purporting to give Oaktree the right (inter alia) to require IRE to buy out
Oaktree's share in the joint venture on terms highly beneficial to Oaktree.
Under the agreement, the buy-out provisions could be triggered by a change of
control in IRE or by the departure or non-involvement in management of the
Chairman or its former Managing Director, Aubrey Glaser. The agreement was
executed on behalf of IRE by Mr Glaser without the knowledge or approval of the
Chairman, the Board or the shareholders of IRE. Mr Glaser's subsequent dismissal
by the Board prompted Oaktree to invoke the terms of the agreement.
IRE issued proceedings in June 2001 seeking to have the agreement declared
unenforceable. Although the High Court found in its favour, the decision was
reversed by the Court of Appeal and IRE now seeks to challenge that decision in
the House of Lords.
In its interim statement released on 12th September 2002, providing details of
the claim and an estimate of the potential loss to IRE, it was stated that, on
the basis of legal advice it had received, the Board was of the opinion that the
Company was unlikely to incur a material loss in this matter and that therefore
no provision had been included in the accounts for this contingent liability.
The Board's position has not changed but the matter continues to be kept under
review.
Commenting, Rolf L Nordstrom, Chairman of IRE said:
"We are pleased to announce that we have been granted this leave to appeal to
the House of Lords. At all stages of this dispute we have been confident of the
strength of our case. We continue to believe the agreement, the effect of which
would be punitive on IRE, is unenforceable."
"Both the board and our leading counsel remain confident in the strength of our
case, and in a satisfactory outcome for IRE."
- ends -
Date: 26th March 2003
For further details contact:
International Real Estate PLC City Profile Group
Tel: 020-7839-8686 Tel: 020-7448-3244
Rolf L Nordstrom, Chairman Ed Senior
Mobile: 07776-137400 Simon Courtenay
Daniel Akselson, Managing Director e-mail: edward.senior@city-profile.com
Mobile: +31-653-304590
This information is provided by RNS
The company news service from the London Stock Exchange
END
FURUNUNROWROUAR