Vibrant Group Wins Civil Suit Against Former Executives
Vibrant Group has won its civil suit against Peng Yuguo, former chief executive officer of Blackgold Australia, and Tong Chi Ho, the former chairman of Blackgold Australia.
Background of the Suit
The suit arose from irregularities found by a special audit on Chinese coal miner Blackgold International, which was found to have falsified accounts and grossly inflated sales figures since it was acquired by Vibrant Group.
Acquisition and Audit
Blackgold International was acquired for A$37.6 million (S$31.8 million) in July 2017.
A special audit was conducted, which revealed the irregularities, and the suit was filed by Vibrant Group.
Judgment and Damages
Justice Valerie Thean ruled in favour of Vibrant Group in a judgment on Monday (Jan 27), awarding damages and fees to the group.
The damages include the acquisition price of A$37.6 million with simple interest of 5.33 per cent from Jul 13, 2017, and the cost of the special audit of US$1.1 million with a simple interest of 5.33 per cent from Jan 18, 2019.
Stock Performance
Shares of Vibrant Group closed unchanged at S$0.062 on Monday.
Conclusion
The judgment is a significant win for Vibrant Group, which has been seeking damages and fees from the former executives for their role in the irregularities at Blackgold International.
FAQs
Q: Who won the civil suit?
A: Vibrant Group won the civil suit against Peng Yuguo and Tong Chi Ho.
Q: What was the acquisition price of Blackgold International?
A: The acquisition price was A$37.6 million (S$31.8 million) in July 2017.
Q: What was the cost of the special audit?
A: The cost of the special audit was US$1.1 million.
Q: How did Vibrant Group’s shares perform after the judgment?
A: Shares of Vibrant Group closed unchanged at S$0.062 on Monday.
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