SINGAPORE - Media OutReach - 19 September, 2018 - Long Well Group Ltd.,
a privately-held conglomerate with wide ranging business interests, has taken the
key strategic step to enforce a Singapore High Court judgment against
Commerzbank Asset Management Asia Ltd (CAMA) by issuing a letter to its ultimate
holding corporation, Commerzbank Aktiengesellschaft (Commerzbank AG).
The letter was issued to Commerzbank AG headquarters in Frankfurt on 6
September 2018 informing that CAMA has failed to make payment on the S$41
million judgment debt. Commerzbank AG remains the ultimate parent company of
CAMA, which is a "live" company.
Plaintiff lawyers, Lee & Lee, today stated: "Our clients feel
vindicated at having secured a favourable judgment. They regard the pursuit as
a matter of principle and conviction. What's next? They will explore all legal
routes to recover the S$41 million judgment sum."
The latest development comes after Long Well and its
three other plaintiffs battled CAMA for six years in the SHC concerning oil
& gas concessions in Libya. In a March 2018 judgment, the SHC ruled that
CAMA breached three agreements with Long Well Group and the plaintiffs
concerning the concessions.
Since the Singapore High Court judgment, Long Well Group and the other
plaintiffs have made numerous efforts to obtain the judgment sum.
Commerzbank AG was also named as a Defendant in the suit -- it owns
Commerz Asset Management Asia Pacific Pte. Ltd., which in turn owns CAMA.
This case dates back to October 2005 when one of the
defendants, a Commerz fund, and
Indonesia's PT Pertamina successfully bid for and secured oil and gas
concessions in Libya.
Plaintiffs Long Well and
its related companies were expecting to "acquire a direct stake in the profits
gained from the venture". Hence, it made
financial investments in excess of US$18.018 million, in phases. However,
despite making the financial payments, Long Well Group and the other plaintiffs
"never received ownership" of the Commerz fund and the participating shares.
As a result, Long Well
Group and the plaintiffs commenced the legal suit against the defendants. In
the High Court judgment that was issued in March 2018, it specifically stated
CAMA was found "to be in breach of the Transfer Agreement and the Share
Subscription Agreements since [Commerzbank Asset Management Asia Ltd] was
obliged to effect the transfer."
Link to the judgment: https://www.supremecourt.gov.sg/docs/default-source/module-document/judgement/s28-12-long-well-group-(costs)-pdf.pdf