Millennium & Copthorne Hotels encounters difficulty with a Chinese JV

Millennium & Corpthorne Hotels New Zealand Limited, a subsidiary of Millennium & Corpthorne Hotels, one of the largest hotel owners and operators in the world announced on Monday, an update on the difficulties arising from actions initiated by one of its partners in a Chinese joint venture – First Sponsor Capital Limited (FCSL).

Cheung Ping Kwong who controlled FSCL, in March seized the company seals of Idea Valley Investments Holdings Limited or IVIHL and its related subsidiaries, collectively known as i-vale Entities.

FSCL has a 75 per cent interest in IVIHL.

It was reported that Cheung did this through deceit, including intimidation and forceful tactics and also unlawfully took control of i-vale Entities offices and denied rights to access the collective’s accounts, records and other information.

FSCL on Monday completed the appointment of a new legal representative for its subsidiary IVIHL and registered new company seals for five i-vale Entities with the Chinese authorities.

IVIHL will continue to take the necessary measures to protect its interest including reporting Cheung’s unauthorised actions and his apparent scheme to cause loss and damage to the Chinese joint venture.

MCK’s effective interest in the FSCL Group is approximately valued at US$16.3 million.

Source : Channel NewsAsia – 12 Apr 2010

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