[Edaily Reporter Park Sun-Yeop ] LS SECURITIES(078020)HYUNDAI MOTOR SECURITIES is settling its lawsuit with LS Securities regarding the default on asset-backed commercial paper (ABCP) related to China National Energy Chemical Group (CERCG), following a court-mediated settlement recommendation.
LS SECURITIES announced on the 15th that the Seoul High Court’s recommendation for settlement regarding the unjust enrichment lawsuit filed by HYUNDAI MOTOR SECURITIES has become final.
Pursuant to the decision, LS SECURITIES and Hanwha Investment & Securities ( HANWHA INVESTMENT & SECURITIES(003530)) will jointly pay 24,564,110,000 won to HYUNDAI MOTOR SECURITIES. This amount will accrue late payment interest at an annual rate of 5% from November 9, 2018, to January 13, 2023, and at an annual rate of 12% thereafter until the date of full payment.
However, the disclosed award amount represents the full principal that the two defendants are jointly required to pay. The amount LS SECURITIES will actually bear will be determined based on the cost-sharing ratio agreed upon with HANWHA INVESTMENT & SECURITIES. The award amount corresponds to 2.80% of LS SECURITIES’ consolidated equity of 878.74961 billion won as of the end of last year.
HYUNDAI MOTOR SECURITIES has agreed to waive all ancillary and contingent claims other than the specified payment amount, and both parties will bear their own costs incurred in the litigation and mediation.
This lawsuit was filed by HYUNDAI MOTOR SECURITIES, an investor, against HANWHA INVESTMENT & SECURITIES—which was involved in the issuance and underwriting of the ABCP—and LS SECURITIES (formerly e-Best Investment & Securities) following the default on the CERCG-related ABCP. Following the Supreme Court’s ruling, the Seoul High Court issued a recommendation for settlement to resolve the dispute between the parties.
LS SECURITIES plans to pay its share to HYUNDAI MOTOR SECURITIES in accordance with legal procedures, and once the payment is completed, the related litigation will be concluded.
LS SECURITIES announced on the 15th that the Seoul High Court’s recommendation for settlement regarding the unjust enrichment lawsuit filed by HYUNDAI MOTOR SECURITIES has become final.
Pursuant to the decision, LS SECURITIES and Hanwha Investment & Securities ( HANWHA INVESTMENT & SECURITIES(003530)) will jointly pay 24,564,110,000 won to HYUNDAI MOTOR SECURITIES. This amount will accrue late payment interest at an annual rate of 5% from November 9, 2018, to January 13, 2023, and at an annual rate of 12% thereafter until the date of full payment.
However, the disclosed award amount represents the full principal that the two defendants are jointly required to pay. The amount LS SECURITIES will actually bear will be determined based on the cost-sharing ratio agreed upon with HANWHA INVESTMENT & SECURITIES. The award amount corresponds to 2.80% of LS SECURITIES’ consolidated equity of 878.74961 billion won as of the end of last year.
HYUNDAI MOTOR SECURITIES has agreed to waive all ancillary and contingent claims other than the specified payment amount, and both parties will bear their own costs incurred in the litigation and mediation.
This lawsuit was filed by HYUNDAI MOTOR SECURITIES, an investor, against HANWHA INVESTMENT & SECURITIES—which was involved in the issuance and underwriting of the ABCP—and LS SECURITIES (formerly e-Best Investment & Securities) following the default on the CERCG-related ABCP. Following the Supreme Court’s ruling, the Seoul High Court issued a recommendation for settlement to resolve the dispute between the parties.
LS SECURITIES plans to pay its share to HYUNDAI MOTOR SECURITIES in accordance with legal procedures, and once the payment is completed, the related litigation will be concluded.
