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Suzhou court rules in favour of AEM Holdings' subsidiary
THE Suzhou court has passed its verdict on two legal cases in favour of its wholly-owned subsidiary AEM Microtronics (Suzhou) Co (AMSZ), AEM Holdings said.
In announcements dated Feb 2, 2016 and Feb 23, 2017, it had announced previously that it was divesting its plating business and its entire shareholding interest in AEM (Suzhou) Co (ASZ) to Yunyi Electric Co, for 6.63 million yuan (S$1.39 million). It went on to set up a new subsidiary to take over the non-plating business of ASZ, as this portion of the business was not purchased by Yunyi. This new subsidiary was formed as AMSZ.
Yunyi and the group then transferred the assets and liabilities of the non-plating business of ASZ to the newly formed AMSZ.
In an August 2017 announcement, the group flagged that it had since received two notices of suits from ASZ claiming some one million yuan for non-payment of property, plant and equipment transferred from ASZ to AMSZ, and 2.7 million yuan in salaries and purchases which ASZ made payment on behalf of AMSZ.
Court expenses will be borne by ASZ, AEM said in the latest announcement to the Singapore Exchange.