15 Jul 2009 11:16
15 July 2009
Evolvence India Holdings PLC
(the "Company")
Proceedings to recover Katra Holdings loan
The Company announces that it has 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 to date. Including accrued interest, the amount currently owed to the Company is approximately US$4 million.
The loan was supported by a personal guarantee given to the Company by Ramesh Vangal, a founder of KHL. Mr Vangal, the former head of Seagram and PepsiCo in India, [is considered in India to be a serial entrepreneur].
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. Yesterday the Company filed an application for default judgment in New York in relation to this claim. The Company considers this to be a milestone in its continuing attempts to recover the loan in full, although any judgment would only be a step on the path to enforcement of the Company's rights.
The Company continues to explore all remedies against KHL and Mr Vangal. Despite these efforts, in light of the material uncertainty of recovery, the Company's audited accounts for the period ending 31 December 2008 have provided in full for non recovery of the loan.
Contacts:
Evolvence India Holdings plc
William Knight + 44 (0)20 7221 3900
Seymour Pierce (Nominated Adviser)
Nandita Sahgal, Director + 44 (0)20 7107 8000
Cardew Group
Tim Robertson + 44 (0)20 7930 0777