June 1, Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure)

June 1, 2020

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.

June 1, 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 including the underwriting of convertible debentures between 2015 and 2017. In October, 2017, Securities and Exchange Commission of Thailand (hereinafter, “SECT”), filed a criminal complaint against Mr. Mitsuji Konoshita (hereinafter, “Mr. Konoshita”), the then CEO of GL, for committing fraud, misappropriating assets and falsifying accounting records by executing concealed transactions through several associated companies abroad to exaggerate operating results. This was followed by the SECT to make further demands that GL to rectify their past financial results. As a consequence, Mr. Konoshita is under the investigation under relevant Thai authorities (including Department of Special Investigation). JTA filed suits against GL and its related entities for fabricating financial statements by GL in order to strive to collect invested funds, which was made based on these fabricated financial statements and GL’s persuasion that misled JTA to make such investments in GL.

2. Development of Litigation in Singapore

As the Company announced in the February 20th, 2020 release “Acknowledgement for the Current Situation on Group Lease PCL (Continuous Disclosure) “, JTA filed an application for an order to continue the Mareva Injunction against Mr. Konoshita, Group Lease Holdings Pte. Ltd., (hereinafter, “GLH”) and Cougar Pacific Pte. Ltd., pending the determination of the main appeal. Today, the Singapore Court of Appeal has rendered its judgment and reinstated the domestic Mareva injunction against Mr. Konoshita and the Worldwide Mareva injunction against GLH. In coming to its decision, the Court of Appeal found that JTA has a good arguable appeal and that there continues to be a real risk of dissipation of assets with respect to Mr Konoshita and GLH. In particular, the Court of Appeal was satisfied that “JTA had demonstrated a good arguable appeal that the GLH Loans were shams and not bona fide, independent arm’s length transactions by virtue of the round-tripping scheme.” The Court of Appeal also rejected an argument by lawyers for Mr Konoshita and GLH that JTA had not come to court with “clean hands” due to its alleged role in the takeover of Cougar Pacific Pte Ltd, as the trial judge had already concluded that the conduct of JTA did not amount to an abuse of process.

The injunctive order against Cougar Pacific Pte. Ltd., was lifted on the grounds that there is no real risk of dissipation of its assets due to the change in its management.

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




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