Overview
Fresh on the back of their Jiadeli victory, ARC Capital has announced that, on 16 June 2015, the China International Economic and Trade Arbitration Commission (“CIETAC”) unanimously ruled that the Orient Home Group shall be required to refund Shanghai C.P. Jing Cheng Enterprise Development Co. Ltd. (a subsidiary of ARCH) the entire RMB480m deposit (equivalent to approximately S$77.3m) relating to the acquisition of a majority stake in Orient Home Industrial Co. Ltd in December 2010.
CIETAC also ruled that the Orient Home Group shall pay Shanghai CP JC late payment interest calculated from 5 March 2011 to the actual payment date, applying the lending interest over the same period as published by the People’s Bank of China, as well as the arbitration fee of approximately RMB4.4m (equivalent to approximately S$0.7m).
The carrying value of the claim in ARC Capital’s NAV is currently RMB250m (approximately US$41m), and the Board has resolved to keep this unchanged.
ARCH : ARC Capital wins Oriental Home dispute