Singapore High Court ruling based on legal proceedings that began in 2012; Long Well has commenced action to enforce judgement
SINGAPORE – Media OutReach – 7 May, 2018 – In a Singapore High Court judgement just released, Commerzbank Asset Management Asia Ltd., the fund management entity of reputable German lender Commerzbank Aktiengesellschaft, has been found to have breached its contract with Long Well Group Ltd. and its related Singapore and Indonesian entities.
For these breaches, Commerzbank Asset Management Asia will now have to pay S$38 million in compensation, based on the liable amount and interest accruing from about the time these agreements were signed.
The Court ruled that Commerzbank Asset Management Asia had breached three 2006 agreements with Long Well Group and its related companies, which sparked this case.
Long Well and its related entities are now in the process of enforcing the judgment of the Singapore High Court on Commerzbank Asset Management Asia.
Long Well Group and its related entities are privately held with business interests in energy, construction and property in Southeast Asia. They began legal proceedings against Commerzbank Asset Management Asia in 2012.
The defendants in this Singapore High Court case included German-headquartered Commerzbank Aktiengesellschaft, which owns Commerz Asset Management Asia Pacific Pte. Ltd., which in turn owns Commerzbank Asset Management Asia.
In the judgment handed out, Commerzbank Asset Management Asia was found “to be in breach of the Transfer Agreement and the Share Subscription Agreements since [Commerzbank Asset Management Asia] was obliged to effect the transfer.”
Origins of the Long Well Group vs Commerzbank Suit
This case dates back to October 2005 when one of the defendants, a Commerzbank-related entity and a co-bidder successfully bid for and secured oil and gas concessions in Libya.
As negotiations progressed, the plaintiffs were expecting to “acquire a direct stake in the profits gained from the venture”.
However, despite making financial payments, Long Well Group and the plaintiffs claimed that they “never received ownership” of the Commerzbank fund and that the participating shares were not transferred to them.
As a result, Long Well Group and the plaintiffs commenced the legal action against the Commerzbank entities in 2012 to seek compensation.
(Link: Suit No. 28 of 2012 of the High Court of Singapore between Long Well Group Ltd. and Commerzbank Aktiengesellschaft)