Big jeans manufacturer Ruxing (4414-TW) Today (8th) held a re-news. In response to the Cambodian land disposal case, the company stated that since the time for the transfer of property rights with the original buyer had exceeded the estimate at the time of signing the contract, it decided to negotiate with the original buyer to terminate the contract and pay 22 million dollar, aboutNew Taiwan Dollar Sold to a new buyer for 680 million yuan, and the disposal benefits are estimated to be US$19.5 million, approximatelyNew Taiwan Dollar 600 million yuan.
On January 11, Ruxing announced on behalf of its subsidiary, Ruxing Garment (Cambodia), a contract on disposal of land, with the total transaction amountdollars 20.5 million yuan signed a sales contract with Cambodian real estate developer Mekong Resort Development Construction Co., Ltd. and received the first installment after signing the contractdollars 1 million yuan.
However, since the land has been held for more than 20 years, the transfer documents are different from the current use documents, and both need to be updated. However, the update process is complicated and has exceeded the estimated time limit of both parties at the time of signing the contract. Ruxing said that in order to avoid affecting the agreed schedule and funding arrangements of the original contract, it was decided to negotiate the terms of termination of the contract with the original buyer and negotiate the transaction conditions of the new buyer.
Ruxing further pointed out that the new buyer is a natural person, and his family is the previous holder of the land. He has a full understanding of the land acquisition and transaction process, and is able and willing to undertake the procedures for the transfer of property rights by himself, which can ease the seller’s performance. The obligation to transfer land property rights is helpful for the performance of the contract. The new buyer also provides better payment terms than the original buyer, and uses the equivalent land as a guarantee, which can effectively protect the company’s price and creditor’s rights.
Ruxing said that the original buyer can understand the reasons why the company requested to terminate the contract, but the two parties are still negotiating the terms of the contract, and the terms of the contract with the new buyer also retain the terms of exemption from relevant legal liability if the contract with the original buyer has not been terminated.
Ruxing pointed out that, because the relevant procedures and operations of the local bank in Cambodia have not been completed, the company has temporarily asked the subsidiary of the group to collect the money for the transaction. The price of each issue will be repatriated as soon as possible in accordance with the laws and regulations, and the management authority and relevant norms will be followed, and the financial planning and other arrangements will be used to promote the sound operation and development of the company.
Ruxing emphasized that in order to avoid litigation, the relevant situation has been disclosed to the old and new buyers. In order to protect the rights and interests of shareholders and investors, it has also released a major message that it has submitted to negotiate with the original buyer to terminate the contract. The results of subsequent negotiations will be Immediately report to the competent authorities and accountants, and handle information disclosure matters in accordance with regulations.