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ARC Capital Holdings (ARCH)

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Wednesday 22 April, 2015

ARC Capital Holdings

Independent Legal Review

RNS Number : 0047L
ARC Capital Holdings Limited
22 April 2015
 



22 April 2015

 

For Immediate Release

ARC Capital Holdings Limited ("ARCH" or the "Company")

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.

 

Enquiries

 

For further information, please contact:

 

ARC Capital Holdings Limited
Alpay Ece / Sean Hurst                                                                                                                      

Tel: +44 (0)20 7845 5950

 

Edmond de Rothschild Securities (UK) Limited
William Marle                                                                                                      

Tel: +44 (0)20 7845 5950

John Armstrong-Denby                                                                                                     

Tel: +44 (0)20 7845 5950

Hiroshi Funaki                                                                                                     

Tel: +44 (0)20 7845 5960


Grant Thornton UK LLP, Nominated Adviser                                 
Philip Secrett                                                                                                        

Tel: +44 (0)20 7383 5100

[email protected]

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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