Hi Ramongo. Sounded a bit legal to me so I rang the company to...

Hi Ramongo.

Sounded a bit legal to me so I rang the company to get a layman's view.

It appears Lamboo will be walking away from the Hengda deal but as there was a legal framework signed, & a $2m refundable deposit is involved, all the legal aspects have to be addressed so that the termination happens in a lawful & orderly fashion.

In order to legally terminate, Lamboo have to demonstrate material breach as documented in the agreement - 'Otherwise, the Framework Agreement may be terminated for material breach and other customary termination events.'

Given the known facts there would be no problem demonstrating 'material breach' but, it appears, new facts come to light almost daily so documenting the full story cannot yet be finalised.

Once this has been completed Lamboo will be able to legally walk away & have the $2m deposit refunded.
I also understand the $2m deposit - 'Under the Agreement, Lamboo have paid to Wang a refundable deposit of US$2,000,000 guaranteed by Hengda' - will be repaid to Lamboo by Hengda's bankers.

This could take another 1 to 2 weeks.