LJ International Inc., the leading jewelry manufacturer and retailer in China, based in Hong Kong and registered in the British Virgin Islands, announced that on January 14, 2009 it entered into a settlement agreement with the lead plaintiff in the class-action shareholder lawsuit against it.
The lawsuit covers all holders of BVI company’s common stock in the period from February 15, 2007 through September 6, 2007. In a complaint made in April 2008, plaintiffs had alleged that LJI had made material misstatements concerning its projected Q4 and year-end 2006 net income and earnings. LJI had denied all the claims alleged by the plaintiffs, and has agreed to the settlement just in order to eliminate litigation costs and time required for it.
Under the terms of the settlement agreement on the lawsuiit that was filed in 2007, LJI will create settlement fund of $2 mln, which will be funded entirely by its insurer. Also, all claims alleged in the lawsuit will be dismissed, and the BVI company will be released from liability for all of them.
The current settlement agreement is subject to preliminary and final approval by the Court, and the hearing for the preliminary approval is scheduled for February 23, 2009.
Evergreen Pulp mill, which was sold by its HK-based owner Lee & Man Paper Manufacturing to a British Virgin Islands corporation, is still not turned around. The new difficulties for the mill, which has been shut down since mid-October, were caused by the regulators, which informed about their intent to revoke the water quality permit.
Last week, the North Coast Regional Water Quality Control Board issued a notice to revoke Evergreen’s waste discharge requirements, necessary for the mill to operate. The new permit that can be issued by the board will be much stricter, while even the current guidelines could not be successfully met by the company. For the period 2005 to 2007 Evergreen owes $463,000 in fines, and violations of 2008 can make $500,000 or even more. The water board can transfer a permit to a new owner, but water resources control engineer considers it does not make sense as the mill cannot comply with it.
With stricter rules that would apply in the new permit, it is even less likely the mill could come into compliance. A secondary treatment of the wastewater that could be necessary can cost $15 million to $20 million, and that would give buyers a reason to pause, as the mill itself may not currently be worth such amount.
After the two subsidiaries that owned Evergreen were sold to a BVI company, the regional board was notified of facility’s sale to ACE Mills Inc. in December. But the board has not heard from ACE Mills or Evergreen since that time, so it is unknown if this company refused from the purchase of Evergreen at the last minute.
The matter will be heard on March 12. Evergreen in still listed as incorporated in Colorado, its CEO David Tsang has not returned calls or e-mail inquiries.
BVI company Pansoft Company Limited, one of the leading enterprise resource planning software solutions and services providers for the oil and gas industry in China, has announced its three-year growth strategy, which was approved at its recent board meeting. It was stated by Mr Hugh Wang, Chairman of the board of the BVI company, that the company is experiencing continued growth despite the period of global financial crisis and recession in the world economy.
The recent previous board meeting of Pansoft Company was held on December 13, 2008. Then, a three-year budget and multi-year plan for business expansion of the BVI company were approved. Executing the growth strategy, Pansoft should quickly scale up in the coming years and emerge as the predominant software solutions and services provider in China’s management software market.
The BVI company is planning to expand through organic growth as well as mergers and acquisitions. Pansoft will focus on expanding its project scope and service offerings to the subsidiaries of its large clients. Additionally, leveraging its business model, the BVI company is planning to launch similar solutions and services outside of the energy industry. Also, in the current favorable price environment, Pansoft is actively seeking attractive acquisition targets, to enter another high growth industry through mergers and acquisitions.
As a part of new strategy, Pansoft went on public trading at NASDAQ on January 23. Company’s management has scheduled several conferences with investors and analysts in the U.S. from January 23 to January 30, 2009 to present its business strategies.