Hahn & Co has upper hand in legal battle against Namyang Dairy Seoul Central District Courtaccepts Hahn & Co's injunction request again

Translated by Kim So-in 공개 2021-10-29 07:56:05

이 기사는 2021년 10월 29일 07:29 더벨 유료페이지에 표출된 기사입니다.

South Korean buyout firm Hahn & Co has an upper hand in its legal battle against the country’s Namyang Dairy Products as the court accepted its injunction request to disallow the Namyang owner’s family from exercising voting rights.

The court that made the latest decision reached a relatively detailed conclusion considering the importance of the issue. As the court plays a key role in the civil division of the district court, the decision it made is expected to have a significant impact on a lawsuit for violation of a stock purchase agreement between the two sides.

On Wednesday, Civil Agreement Division 50 of the Seoul Central District Court partly accepted the injunction request filed by Hahn & Co against Namyang Dairy chairman Hong Won-sik, his wife Lee Woon-kyung, and grandson Hong Seung-eui, to disallow them from exercising voting rights.

The court said that chairman Hong should not exercise his vote in favor of the agenda at the extraordinary general meeting scheduled for Friday, and ordered that 10 billion won ($8.54 million) should be paid to the buyout firm in case of violation of the order.

"The closing date of the stock purchase agreement was set at 10:00 am on July 30, 2021, and the notice of cancellation by debtors is not effective, so the stock purchase agreement in this case is still valid," said the court. “The appointment of a new director is not seen as a conservative measure to prevent vacancies caused by the resignation of existing executives, but rather seen as a move to prevent or delay the securing of management rights.”

Legal experts said the court’s latest decision has increased the possibility that the legal dispute between Hahn & Co and Namyang Dairy may go in the buyout firm’s favor. In August, Hahn & Co filed an injunction request, seeking to ban the owner's family from disposing shares, and the court accepted it.

Other lawsuits brought by Hahn & Co include a case against Hong to fulfill and complete the sale of the company, which is the main lawsuit. Legal sources said the latest ruling is highly likely to have an impact on the main case.

Market insiders are paying attention to whether the main lawsuit will proceed at a speedy pace after the court’s latest decision. Legal experts initially expected the lawsuit filed by Hahn & Co to take at least 2-3 years to reach a conclusion. (Reporting by Gyoung-tae Kim)
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