LONDON (Alliance News) - BSD Crown Ltd Tuesday said it has instructed its lawyers to pursue "all courses of action" in regards to its cash deposits held with Meinl Bank AG in Austria, and is also considering a call for a general meeting with its lawyers.
The company has cash deposits of around USD30 million with Meinl Bank, and its controlling shareholder BGI Investments (1961) Ltd also has cash deposits of around USD2.7 million with the bank.
BSD Crown's shares were suspended at the end of last month after it said it would not be able to publish its financial statements for 2015, as it was awaiting confirmation from some banks relating to the status of some deposits held with them.
Following demands made by lawyers acting on behalf of the companies, documents purporting to relate to the deposits with Meinl have been received, BSD Crown said, indicating that since 2013 these deposits have allegedly been used as collateral for loans taken by off-shore companies unknown to BSD and BGI.
The two companies said that, to the best of their knowledge, neither has ever agreed for the use of the deposits as collateral or as a guarantee in favour of any further party. "Furthermore, the company and BGI have in their possession documents which indicate that the deposits are held in accounts with Meinl on behalf of the company and BGI free and clear of any encumbrance," BSD Crown said.
As such both companies have instructed their lawyers to explore and pursue all courses of action in regards to the deposits.
Additionally, BSD noted a statement from Yoss Willi Management and Investments Ltd saying its legal representatives had written to the company to request the convening of a general meeting as soon as possible with the purpose of replacing all the incumbent non-external directors of the company with its own proposed directors, amongst other things.
BSD said it has received the request and is considering it with its lawyers.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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