Plumber1, I posted this earlier on the Wellington Capital PIF/Octaviar (MFS) PIF thread:: I assume you are aware that GEM is in a trading Halt and no announcement has been made to the ASX as yet in relation to the following possible serious financial implications to the company and shareholders?
Cherie Hearts Group International Pte Ltd
15th April 2011
MEDIA RELEASE FROM CHERIE HEARTS GROUP INTERNATIONAL PTE LTD TO SINGAPORE
MEDIA
We are pleased to inform that the Singapore High Court on 14th April 2011, granted various interim
reliefs in our favour at today’s hearing on our application for various injunctive reliefs against G8
Education Ltd (“G8”). At the hearing, we were represented by our lawyers, Allen & Gledhill LLP.
Pending the determination of the substantive dispute between Cherie Hearts Group International Pte Ltd
(“Cherie Hearts”) and G8, the Court ordered the following injunctive reliefs:
• The appointment of KordaMentha Pte Ltd as receivers of Cherie Hearts is set aside.
• G8 is not to exercise its right to appoint further receiver(s) until trial or further order.
• The shares and directorship in the following subsidiaries of Cherie Hearts, which were previously
transferred to G8’s subsidiary, were reinstated to Cherie Hearts’ Founders, Dr Sam Yap and Dr
Gurchran Singh:
o Cherie Hearts Kids Cottage (TK);
o Cherie Hearts Edukidz Pte Ltd (JT);
o Cherie Hearts Discovery School Pte Ltd (TS 42);
o Cherie Hearts Preschool Pte Ltd (TP);
o Cherie Hearts Sunshine Kidz Pte Ltd (TS 34);
o Our Juniors’ Schoolhouse Pte Ltd;
o Cherie Hearts Childcare (Limbang) Pte Ltd (LD);
o Teeny Tiny Child Care & Development Centre Pte Ltd (TT);
o Loving Child Care Centre Pte Ltd (LLC);
o Loving Development Pte Ltd (LDC);
o Gloryland Learning Centre @ Toh Tuck Pte Ltd; and
o Gloryland Learning Centre Pte Ltd.
We take this opportunity to express our gratitude once again to our parents, financial institutions, banks
and government authorities for your support all these years, and also for the understanding shown over
the past few weeks. We look forward to having your continued support.
Yours Faithfully
Sam Yap Soon Guan (Dr.)
Group Executive Chairman
Cherie Hearts Group International
And this article as well, Cheers.
Re: Wellington Capital PIF/Octaviar (MFS) PIF
http://www.channelnewsasia.com/stori...123079/1/.html
Cherie Hearts suing Australian firm for breach of contract
SINGAPORE : Childcare operator Cherie Hearts is suing Australian firm G8 Education for breach of contract.
It has also successfully applied for a court order overturning a receivership appointment by G8, which the operator said was unlawful.
The move by G8 had put Cherie Hearts under threat of liquidation.
But while the operator appears to be out of the woods for now, its sale agreement with G8 is up in the air, with possible implications on future expansion plans by Cherie Hearts.
Lawyers for Cherie Hearts declined comment on the deal pending the outcome of the trial.
Last October, G8 agreed to buy over Cherie Hearts' Singapore operations for S$24.6 million, as part of a move by the Australian-listed firm to expand its childcare business into Singapore.
An affidavit submitted by Cherie Hearts detailed how, as part of the business acquisition contract, G8 would extend a S$12 million loan to Cherie Hearts and assume part of its outstanding debts.
The loan was to have been offset against the purchase price, and Cherie Hearts would receive some S$9 million once the sale was completed.
But on March 22, with a few weeks to go, receivers were called into the operator's Cecil Street headquarters, with G8 alleging a loan default of S$5.5 million.
This was disputed by Cherie Hearts, which said its loans had been effectively paid off as of March 1.
It later found out that G8 had also exercised its security over the alleged loan default, and, without its knowledge, assumed control of 12 of its subsidiary companies in Singapore.
Cherie Hearts has since assumed control of the 12 centres.
The case is now pending trial.