SET-listed Group Lease Plc (GL) insists it has not come to terms with J Trust Co Ltd on the latter's attempt to cancel the J Trust convertible debentures with GL and take over GL's business in Indonesia.
In a news release dated Nov 30, J Trust mentioned its intention to curtail its relationship with embattled GL, proposing to cancel the J Trust convertible debentures and demand that GL make payment. The release also showed J Trust's intention to take over GL's business in Indonesia.
"But no agreement has been reached between J Trust and [GL]," GL said in its own statement.
GL will consider proposals made by J Trust on a case-by-case basis once any of them is formally received by the company, GL said.
The J Trust release further mentioned that J Trust Asia Pte Ltd had sent a letter to GL on Nov 30, seeking to cancel the investment agreements dated June 6, 2016 and Dec 1, 2016 on convertible debentures with an aggregate amount of US$180 million (5.9 billion baht), demanding immediate payment.
"[GL] currently has no plan to cancel the convertible debentures issued to [J Trust Asia], nor does the company have any plan to sell [its] business in Indonesia," GL said.
"As supported by the opinion of [GL's] internal and external legal counsel, it does not appear that J Trust Asia currently has the right either by law or by agreement to cancel its investment in the company under the investment agreements."
GL's share price has fallen steeply amid an ongoing regulatory scandal. GL is a digital finance company specialising in hire purchase for Japanese motorcycle brands.
On Oct 16, the Securities and Exchange Commission (SEC) filed a criminal complaint against former GL chief executive Mitsuji Konoshita with the Department of Special Investigation, alleging fraud, misappropriation of company assets and falsification of accounting records by executing concealed transactions through several associated companies abroad to exaggerate the company's operating results.
The regulator uncovered evidence that Group Lease Holding Co Ltd (GLH), a subsidiary of GL based in Singapore, had issued loans to four registered companies in Cyprus and another in Singapore worth $54 million, with Mr Konoshita serving as the controller and ultimate benefactor.
After receiving the loans from GLH, the five debtor firms transferred the money within companies of the lender's group to repay the interest and principal to GLH in instalments, the SEC said.
The interest payments were recorded as income in GLH's financial statements, which constitutes fabrication of accounting records and exaggeration of operating results, the regulator said.
GL shares closed yesterday on the Stock Exchange of Thailand at 7.10 baht, down 10 satang, in trade worth 49.8 million baht.
