28 Oct 2009 17:11
EIH PLC
(the "Company")
Judgment awarded in proceedings to recover Katra Holdings loan
On 15 July 2009 the Company announced that it had filed an application for default judgment in New York in connection with its continuing efforts to recover in full the amount lent to Katra Holdings Limited ("KHL") in 2007.
In June 2007 the Company made a loan of US$2.5 million to Mauritian-incorporated KHL. The maturity date of this loan was 4 September 2007. KHL has failed to repay any amount of this loan (including accrued interest) to date. The loan was supported by a personal guarantee given to the Company by Ramesh Vangal, a founder of KHL. Mr Vangal is the former head of Seagram and PepsiCo in India.
Following repeated attempts to recover the loan from KHL, in March 2009 the Company commenced legal proceedings in New York against Mr Vangal to enforce the personal guarantee. The Company filed an application for default judgment in New York in relation to this claim on 14 July 2007.
The Company can now announce that judgment against Mr Vangal has been awarded by the Supreme Court of the State of New York, County of New York in the sum of $4,153,118.49. The Company will now take all necessary steps to enforce this judgment against Mr Vangal.
William Knight (Chairman) commented:
"It should be noted that Mr Vangal and his associated companies have shown a complete disregard for their legal obligations. We have substantial resources which we intend to deploy to ensure our loan is repaid in full."
Contact:
Seymour Pierce (Nominated Adviser)
Nandita Sahgal, Director
+44 (0)20 7107 8000
END