JTA launches civil lawsuit against GL

J Trust Asia Pte Ltd (JTA) has filed lawsuits against SET-listed Group Lease Plc (GL), requesting compensation for alleged wrongful acts, avoidance of voidable transactions and false claims of damages.

On Jan 9, JTA filed a civil complaint with the Civil Court against GL, former GL chief executive Mitsuji Konoshita, and three directors on allegations of wrongful acts, avoidance of voidable transactions and claims of compensation for damages, requesting all defendants pay damages to JTA. The first court hearing will be held on April 23.

JTA also filed a petition for business rehabilitation of GL with the Central Bankruptcy Court on Jan 10, with the first inquiry scheduled for March 19.

JTA has initiated legal proceedings against Group Lease Holdings Pte Ltd (GLH), GL’s wholly-owned subsidiary registered in Singapore, and other companies based on the allegation that GLH and other defendants defrauded JTA to invest in GL of a total of US$180 million (5.75 billion baht).

JTA published an online statement on Jan 12 indicating the company’s intention to cancel its investment in convertible debentures of GL worth $180 million.

GL has denied all the allegations, saying the company has not received any writs of summons, copies of the complaint, petitions for business rehabilitation, or documents from the courts, the Department of Special Investigation (DSI), or the Economic Crime Suppression Division.

“However, the company has already engaged legal counsel and is in discussions with them to prepare to defend all the cases, including considering taking necessary and appropriate legal actions to further protect the rights and interests of the company and its shareholders, and claim compensation for all damages incurred or to be incurred by the company resulting from actions by all parties involved,” GL said in its statement.

“The company can continue operations as usual. Furthermore, legal proceedings are in the initial stages and courts have not decided on the merits of the cases. In this regard, the company trusts that it can disprove [JTA’s] allegations [in] all legal proceedings.”

In a news release dated Nov 30, J Trust Co Ltd, the parent company of JTA, mentioned its intention to curtail its relationship with GL, proposing to cancel the J Trust convertible debentures and demand that GL make payments on them. The release also showed J Trust’s intention to take over GL’s business in Indonesia.

GL’s share price has fallen drastically amid the 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 filed a criminal complaint against Mr Konoshita with the DSI, 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.

GL shares closed yesterday on the SET at 6.40 baht, down 30 satang, in trade worth 29.8 million baht.