News Release

Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure)

Oct 6, 2020
J Trust Co., Ltd.


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J Trust Co., Ltd. (hereinafter, “the Company”) has continuously disclosed information regarding Group Lease PCL (hereinafter, “GL”) and would like to make a further announcement on subsequent events as follows: Development of Litigation in Singapore JTA filed a claim in the Singapore Court for deceit against Mr. Mitusji Konoshita (hereinafter, “Mr. Konoshtia”) and Group Lease Holdings Pte. Ltd. (hereinafter, “GLH”) and for unlawful conspiracy against Mr Konoshita, GLH and companies to whom GLH extended alleged loans (hereinafter, “GLH Loans”), namely, Cougar Pacific Pte. Ltd. (incorporated in Singapore) as well as Aref Holdings Limited, Adalene Limited, Bellaven Limited, and Baguera Limited (all of which are incorporated in Cyprus). These companies are collectively referred to as the “Borrowers”. As the Company announced in the February 12, 2020 release “Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure) “, the High Court of the Republic of Singapore refused the claim by JTA on February 12, 2020, and JTA appealed. The Court of Appeal of the Republic of Singapore rendered its judgment in JTA's favour on October 6, 2020. The Court of Appeal of the Supreme Court found that the GLH Loans were a sham and were falsely accounted for in the financial and accounting information provided by GLH and GL’s financial statements to exaggerate GL’s operating results. The Court of Appeal held that Mr Konoshita and GLH had committed deceit and that Mr Konoshita, GLH and the Borrowers had all unlawfully conspired to damage or injure JTA. The Court of Appeal also found that Mr Konoshita was the beneficial owner of all the Borrowers. In conclusion, the Court of Appeal held that all of the defendants are jointly and severally liable to JTA for the sum of USD 70,006,122.49 plus SGD 131,817.80. There was no order for compensation for the investments by JTA under the Investment Agreement entered in June 2016, because these are to be repaid in 2021 and are at present not yet an actual loss suffered by JTA. The judgment is final and binding, not subject to further appeal, save for costs which will be determined at a later date. We will make further disclosure as soon as any further development occurs.


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J Trust Co., Ltd. Finance Department