Issue #20 : Lights…Out?
Happy Monday!
We have a very special announcement today in lieu of our usual Spotlight feature. And it's an exciting one. 😎
But first, let's get to the latest 🌶 legal headlines:
China: Netherlands-based MNC to pay USD 62 million for FCPA violation over sales in China
Hong Kong: Former De Tomaso CEO files lawsuit against company & Hong Kong founder over alleged fraud
India: UNCITRAL tribunal rejects Mauritian injunction to stop USD 640 million treat claim against India
India: Gail India sues the subsidiary of a Russian energy company over LNG non-delivery
India: Zonta Infratech seeks arbitration over halt of biomining work
Indonesia: ExxonMobil Oil Indonesia settles Indonesian human rights lawsuit that has lasted over two decades
Japan: Japanese creditors to launch international arbitration over Credit Suisse AT1 write down
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
Don’t Cut My Power!
Ahh, electricity bills.
The one bill you can never want to skip.
Even when a global pandemic comes knocking at your door!
🍿 Background
Cahya Mata Phosphates (“CMP“) entered into a power purchase agreement in 2019 with SESCO over the sale & purchase of electric power for CMP’s phosphate production facility in Samalaju, Sarawak.
The COVID-19 pandemic meant that the construction of Samalaju encountered severe delays, and was fully commissioned only in December 2022.
However, despite the 10,000 drums of phosphorus now in its inventory, CMP has been unable to proceed with selling the products as it awaits approvals.
🤔 What’s the Issue?
SESCO insisted on charging a significantly higher tiered tariff than what was agreed upon.
CMP responded by initiating AIAC arbitration proceedings and even secured an interim injunction to keep the electricity flowing until 31 Jan 2023.
CMP was less fortuitous the second time around, when SESCO issued a default notice to terminate the PPA and its supply of electricity to the Samalju plant.
When the arbitrator turned CMP’s request down, CMP turned to the Kuching High Court for an expert injunction.
And they won!
But this is only a temporary relief.
Let’s hope those approvals come through soon, eh? 😉
When A Bank Collapses…
Back in March, UBS launched an emergency takeover of Credit Suisse.
The Swiss Financial Market Supervisory Authority (FINMA) ordered Credit Suisse to write down 16 billion Swiss francs of its AT1 bonds in accordance with an emergency government ordinance.
This angered holders globally, as bond holders are typically prioritised over shareholders in bankruptcy proceedings.
Instead, shareholders received USD 3.23 billion and the AT1 holders received nothing.
🍿 What’s Next?
Investors now want to revoke the FINMA order.
In Singapore, ~100 investors have joined the fray to recover $100 million in losses.
The class action is one of the largest group actions to come from Asia arising from a bank’s collapse. It focuses on the free trade agreement signed in 2003 between Singapore and the European Free Trade Association (EFTA), which requires inter alia the fair and equitable treatment of foreign investors.
Similar class-action suits are under way in other countries, including Japan, where the EFTA had signed similar agreements.
The Video Game Fight
An Alibaba subsidiary has been ordered by the Guangzhou Court to cough up USD 7.2 million in compensation to NetEase Inc over a case of copyright infringement.
One of the heftiest fines a Chinese court has issued involving video games.
🍿 What Happened?
In 2019, Ejoy launched the hit mobile game “Three Kingdoms Tactics”. It became Alibaba’s most profitable game, earning over USD 1.97 billion from player spending since its launch.
Meanwhile, NetEase developed and launched strategy game “Shuai Tu Zhi Bin” in 2015. It is now NetEase’s most profitable game and has made just under USD 1 billion since its launch.
👀 And Now?
Ejoy has been ordered to delete 79 items considered to have infringed on NetEase’s copyright.
That said, Ejoy intends to fight back while keeping Three Kingdoms Tactics in play throughout the appeal process!
Food Feature
Curious about this week's dish? 😉
It's called a "khaipean". A Laotian dish that refers to the wild river weed that grows along the Mekong River. It's a staple dish (often fried) & filled with sesame seeds, garlic and tomato.
This particular dish can be found at Khaipean, Luang Prabang - a restaurant with its own food & hospitality program! The food is delicious, reasonably priced & remains one of the top spots for trying out khaipean!
Details: Tripadvisor, Google Maps, Facebook
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Special thanks to Overheard in Asia's sponsor:
David Grief was described as "the Law's Middleman" (Business Times, 2021). You can reach out to him at dg@davidgrief.com if you need help identifying the right lawyer, arbitrator or expert for your matters, or even if you just want to grab a drink 🍵🍺 with someone who has managed and mentored lawyers for almost 5️⃣0️⃣ years!