Alpha Real Trust Limited Galaxia Investment: Court Ruling Update (5184D)
February 19 2020 - 10:37AM
UK Regulatory
TIDMARTL
RNS Number : 5184D
Alpha Real Trust Limited
19 February 2020
LEI: 213800BMY95CP6CYXK69
19 February 2020
ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST" OR "ART" OR THE
"COMPANY")
Galaxia investment: Supreme Court of India declares in favour of
ART
The Supreme Court of India has rejected the challenge to the ICC
Arbitration award filed by Logix Group and its Promoters
("Logix").
As previously announced, following breaches by Logix with
respect to the Galaxia joint venture, ART initiated arbitration
proceedings to protect its Galaxia investment - a 50:50 joint
venture with Logix that owns an 11.2 acre development site located
in NOIDA, the National Capital Region, India. In January 2015, the
International Chamber of Commerce Arbitration declared an award in
favour of ART ordering Logix to return the entire amount invested
by ART along with interest and costs.
Logix challenged the arbitration award at both the Delhi High
Court and latterly a Division Bench of the Delhi High Court,
however both courts declared in favour of the Company and rejected
Logix's appeal. Logix later appealed the dismissal before the
Supreme Court of India. The Supreme Court ordered Logix to deposit
INR 200 million with the court to partially secure the Company's
claim. This amount, reflecting GBP2.3m at the prevailing exchange
rate and including interest, has since been successfully recovered
by the Company.
On 18 February 2020, the Supreme Court upheld the arbitration
award in favour of ART and dismissed Logix's appeal. In addition to
the court held deposit historically recovered by the Company, Logix
were ordered to pay INR 860 million (GBP9.3 million at the current
exchange rate) to ART, of which INR 292 million (GBP3.1 million at
the current exchange rate) is due within 3 months and the balance
within 8 months. The court is permitting Logix to sell the Galaxia
site, which was previously charged in favour of ART, in order to
raise capital. The site is currently under offer for INR 568
million (GBP6.1 million at the current exchange rate) and these
sale proceeds will be deposited with the Supreme Court towards the
settlement amount. Failure by Logix to make payment would result in
higher interest rates applicable under the arbitration award.
Although ART continues to actively pursue its claim, the Company
carried the joint venture in arbitration in its accounts as at 30
September 2019 at INR 350 million (GBP3.8 million at the current
exchange rate). A further sum of INR 115 million (GBP1.2 million at
the current exchange rate) has since been received by the Company
as announced on 17 December 2019. The amount recognised in the
accounts does not include the additional compensation awarded by
the courts, above the carried value, due to uncertainty over timing
and final value of this award.
Further updates will be provided in due course.
For further information please contact:
Alpha Real Trust Limited
David Jeffreys, Chairman, Alpha Real Trust +44 (0) 1481 742 742
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Atholl Tweedie +44 (0) 20 7886 2500
Further information on the Company can be found on the Company's
website: www.alpharealtrustlimited.com .
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END
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