BSD Crown Ltd. (the
“Company”)
(LSE: BSD)
Company updates
Ramat
Gan, 4 August 2017
Further to the announcements dated May
17, 2016, and June 20, 2017,
the Company hereby provides notice of recent developments
pertaining to the Company’s deposit of funds with Meinl Bank
Aktiengesellschaft (the “Deposit” and “Meinl”,
respectively).
On June 16, 2017, the Company was
notified by Meinl that a “default event” had occurred during
May 2016 with respect to a loan taken
by a Virgin Islands company by the
name of Terminus Ventures Limited (“Terminus”) and that
pursuant to such “default event” and a Custody and Pledge Agreement
allegedly executed by the Company to secure Terminus’s loan, the
Deposit became “redeemable” for the purpose of covering Terminus’s
debt.
The Company hereby clarifies that it has never committed or
pledged its Deposit to secure any third party debt, including the
alleged debt of Terminus, nor did it ever enter into the alleged
Custody and Pledge Agreement. Not only that, the Company received
multiple documents and certificates from Meinl, indicating that the
Deposit was free of any limitations or third party rights, and
relied upon such documents and certificates.
On June 20, 2017, the Company
responded to Meinl’s June 16, 2017
notification and categorically rejected all of Meinl’s claims and
arguments. On June 21, 2017, Meinl
seized the Company’s Deposit.
On August 2, 2017, the Company
issued to Meinl and its officers and directors a Notice before
Taking Legal Action, in which it asserted that Meinl
misappropriated the Company’s funds in gross violation of
well-accepted banking procedures and its fiduciary duties, as well
as the duties of its directors and officers. The Company further
argued that a series of events supported by myriad evidence,
implicates or associates Meinl in criminal felonies, including
grand larceny, fraud and collusion to commit fraud. Meinl was
required to immediately refund the Company the sum of USD
$32,007,754.91, which were unlawfully
expropriated from the Deposit.
Enquiries: Joseph Williger,
Active Chairman of the Board