FinancialOne

FinancialOne: 73.6% owned Grand Pacific (GP) has been embroiled in lawsuits in US by pursuing loans from borrowers in default. In one case, counterclaims have been filed by the Bobker Grp, accusing GP of using their Hale project to help Financial One towards its IPO in 2007. They alleged they were convinced to forego a lucrative sale of the project and instead partner GP to develop the project...

GP eventually became a lender and called on the mortgage notes it issued amounting to S$8.1m and the Hale project ran into financial distress. However, FIN appears to have won half the legal battle as the court in NY County ruled in favour of GP in its summary judgment last mth while the lawsuit at Westchester is still in process If co is delisted, it plans to list its Asian ops under wholly-owned subsi Chailease in Taiwan. The exit offer at 48.5c is a cause of unhappiness from minority sh/h due to disc from 2007 IPO price of $1.15. The sh/h will decide whether to accept the offer at an EGM on 29 Mar.