Hello investors.
About the announcement:
For some investors, the sheer number of lawsuits and parties in this story may be a bit confusing.
Don't be fooled because the law acts correctly and processes everything in order.
- The Dathcom JV was incorporated on December 28, 2016 (signature) with AVZ 60%, Cominiere 30% and Dathomir 10% as of January 27, 2017, which became effective by all registrations on March 25, 2017.
- Cominiere has ceded 5% to Dathomir, so AVZ 60%, Cominiere 25%, Dathomir 15%
- Dathomir sold 5% in 2019 and 10% in 2020 to AVZ. Dathomir therefore left the JV and the shares were redistributed.AVZ 75% and Cominiere 25%.
- AVZ has agreed a right of first refusal for a further 15% with Cominiere.
In the JV contract it was agreed that disagreements would be resolved exclusively between the partners of the JV before an international arbitration tribunal. (Arbitration clause)Parties outside the JV have no rights!
Here are the facts in order and some opinions from me
1. First, it is determined whether Jin Cheng is allowed to initiate proceedings at all since they are not partners in the JV.- You are/were not a partner in the JV!- If this is decided, which I believe will be the case since the ICC has refused to merge the cases, Jin Cheng will leave the court and all further proceedings will be ineffective.The sale of 15% to Jin Cheng also becomes invalid
2. Injunction against Cominiere dated April 11, 2023 with a fine of 50,000 per day.Since Cominiere attempted to transfer PR 13359 and also publicly insisted on the dissolution of the JV, in my opinion the condition was violated. By October 5, 2023, a fine of $7.9 million would be due for 158 daily rates.
With points 1 and 2 it would be clear that AVZ owns 75% (60% + 15% Dathomir point 3) and has 15% right of first refusal from Cominiere.
The joint venture consists of AVZ and Cominiere!
3. Dathomir is contesting the purchase agreement from 2019 (5%) and 2020 (10%). We are all curious to hear the reasoning as the sale was completed with full payment and experienced business people were involved on both sides.
In my opinion, AVZ will win these cases.
When point 1 is completed, I also think that the ML will be granted and the state will then intervene regarding Cominiere, as there will then be legal certainty. If the investigation is correct, it is unlikely that the proceedings against DRC will continue before the ICSID.
Combaste
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