Wednesday, July 13, 2016

Next-Gen subsidiaries serve statutory demand on Neo Telemedia for $25 mil

Arch Capital and Hillgo Asia, two wholly-owned subsidiaries of Next-Generation Satellite Communications, on June 29 served a statutory demand on Neo Telemedia for a payment sum of HK$144 million ($25 million) together with interest in full.

This follows a court order from the High Court of Hong Kong filed on June 13 this year, served in favour of Arch and Hillgo to receive a sum of HK$144 million together with interest in full at judgment rate, together with the legal cost on the summons, from Neo.

In a Wednesday filing, Next-Gen says Arch and Hillgo on June 27 received Neo’s notice of appeal filed against the abovementioned court order, as well as its application for a stay of execution of the order filed on July 7.
The hearings on the appeal and the application have been fixed for September 26 and July 29 respectively this year.

The companies have been embroiled in a year-long legal battle since June 2015, after Arch and Hillgo issued a writ of summons against Neo for defaulting on interest payment of about HK$5 million worth of convertible notes due on April 5, 2015.

Neo, a company incorporated in the Cayman Islands, is the issuer of two non-transferable convertible notes for the total principal amount of HK$144 million held by Arch and Hillgo.

Next-Gen last traded at 0.3 cent.

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