The Central Bankruptcy Court has dismissed the rehabilitation petition submitted by JTA against GL as the Court ruled that GL is not insolvent and that JTA’s claims have not proven to be true
Previously, on August 15, the Central Bankruptcy Court for the second time dismissed the JTA submitted rehabilitation petition against GL. The court looked at three factors when deciding to dismiss the case:
1. The amount of GL debt owed to JTA
2. The amount of GL’s assets compared to GL’s liabilities
3. The ability of GL to operate the business
Mr. Tatsuya Konoshita, Chief Executive Officer of Group Lease Public Company Limited, stated that “In regards to the first item, the Court ruled that JTA could not prove the amount of debt GL owned to JTA. Prior to JTA submitting the rehabilitation petition against GL, JTA submitted a civil case in Thailand seeking damages in relation to JTA’s investments in GL. JTA tried to argue in the rehabilitation case that these damages were liabilities owed by GL to JTA, however the Court ruled that since the civil case has yet to conclude, the amount of liabilities GL owes to JTA is unclear. Therefore, the Court could not define the amount GL owes to JTA.
To enter rehabilitation, generally the Court needs to find that the company’s liabilities exceeds the company’s assets. However, the Court ruled that based on GL’s most recent audited financial statement (year-ending December 31, 2018) JTA could not prove that GL is insolvent as GL has significantly more assets than liabilities. Furthermore, the financial statement of GL has not been questioned by the SEC and JTA failed to produce any evidence to show that GL’s financial statement is untrue. Therefore, the Court found that GL’s assets significantly exceeded its liabilities and that GL was not insolvent.”
The Court also found that GL was able to operate the business as usual since the submission of the rehabilitation petition and, coupled with the two above items, dismissed the petition and immediately removed the automatic stay status.
In addition to dismissing the petition, the Court concluded several important facts:
1. JTA is a large financial institution with expertise in financial investments
2. JTA had access to GL’s financial information and invested into GL after careful due diligence including the hiring of financial, tax, and legal experts
3. Therefore, JTA understood their investment into GL and was not deceived
If JTA chooses to appeal, they must file within 30 days of August 15, however the Court has now dismissed their rehabilitation petition twice and we are confident the Court will reach the same conclusion again if JTA does appeal. GL reserves the right to claim damages from JTA due to the legal proceedings they have initiated against GL including but not limited to legal fees.
We appreciate the patience our shareholders and employees have shown over this period and we look forward to delivering more positive results such as this.