March 5, Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure)

March 5, 2020

Company Name: JTRUST ASIA PTE.LTD.
Representative: Nobuyoshi Fujisawa, Managing Director, CEO
Contact: Nobiru Adachi, Director
Telephone: +65-6535-5152

Acknowledgement for the Current Situation on Group Lease PCL
(Continuous Disclosure)

J Trust Co., Ltd., the parent of JTRUST ASIA PTE. LTD., published a press release “Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure)”. Please refer to the attachment.

March 5, 2020
J Trust Co., Ltd.
Securities code: 8508

Acknowledgement for the Current Situation on Group Lease PCL
(Continuous Disclosure)

J Trust Co., Ltd. (hereinafter, “the Company”) has continuously disclosed information regarding Group Lease PCL (hereinafter, “GL”) and would like to make a further announcement on subsequent events as follows:

1. History

JTRUST ASIA PTE. LTD. (hereinafter, “JTA”) made investments in GL through underwriting convertible bonds and the like between 2015 and 2017.
In October, 2017, Securities and Exchange Commission of Thailand however filed a criminal complaint against Mr. Mitsuji Konoshita (hereinafter, “Mr. Konoshita”), the then CEO of GL because he used illegal transactions to embellish GL’s financial statements, and the Commission also demanded GL adjust their past financial results. As a consequence, Mr. Konoshita is under the investigation under the Thai authorities.
JTA filed suits against GL and its related entities to strive to collect the investment funds as a reason for window-dressing financial statements by GL and the like, based on which JTA made investments in GL. (Provision of allowance for doubtful accounts was recorded for the total amount of receivable against GL held by JTA in FY March, 2019.)

2. Development of Litigation in Thailand

JTA filed a lawsuit against GL, its related Directors and Mr. Konoshita for damages caused by cancelation of the Investment Agreement regarding convertible debentures in Thailand, which is pending in the civil court in Thailand.

In addition, JTA also filed a business reorganization petition against GL; however, the petition was dismissed in the bankruptcy court; therefore, JTA filed the appeal against it. The Court of Appeal repealed the judgment by the bankruptcy court and remanded it to the bankruptcy court. Once again, the bankruptcy court dismissed the petition and JTA filed an appeal against the bankruptcy court judgment and the case remains in pending in the Court of Appeal.

On the other hand, GL filed a lawsuit against JTA claiming that the cases filed against GL by JTA were inappropriate and unlawful, seeking damages incurred by GL, 880 million THB, equivalent to approximately 2.99 billion yen (exchange rate: THB 1 = 3.4 yen)

JTA contested against the claim by GL because there was no reasonable cause on the claim; however, today, the Court of First Instance dismissed JTA’s argument and JTA was ordered to pay GL THB 685 million (approximately 2.33 billion yen) and the legal costs and fees.

The Company was dissatisfied that JTA’s defence had been dismissed. The Company is considering that JTA will appeal the judgment accordingly. As of today, internal procedures in the court is yet completed; therefore, we have not received the written judgment; however, the Company is to discuss the further measures after examining the detailed judgment and discussing the matter with attorneys.

We will make further disclosure as soon as any further development occurs.

END

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