Issue #31 : Sour Milk
Welcome to the 31th edition of Overheard in Asia!
Here are the 🌶 headlines:
Ling Yah
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A Massive Fight
Dabur India is in big trouble.
🍿 What Happened?
Dabur India is a well-known consumer goods company. Some of its products include the Chyawanprash supplement, Honitus cough syrup, Lal Dant Manjan toothpaste, Ashokarishta tonic, Real juices, Odomos, Vatika hair products, Pudin Hara and Hajmola digestives.
Recently, consumers within the hair relaxer industry raised concerns that some of Dabur India’s subsidiaries had sold products containing chemicals related to the development of cancer and other health complications, including ovarian and uterine cancers.
The subsidiaries in question are Namaste Laboratories LLC, Dermoviva Skin Essentials Inc., and Dabur International Ltd (“Subsidiaries”).
👀 Going to Court
To date, approximately 5,400 cases have been filed against these Subsidiaries and are now consolidated under a “Multi-District Litigation” in a US District Court in Illinois.
The lawsuits are currently in preliminary stages, with the court assessing the validity of the filed complaints and seeking relevant information and documentation.
While the Subsidiaries have denied liability, it looks like they’re anticipating a very steep legal bill regardless of the outcome.
Yikes.
The 1MDB Saga Continues
The 1MDB drama continues to haunt Malaysia.
🍿 Background
1MDB Development Berhad was a Malaysian state investment fund established in 2009.
1MDB raised a reported USD 6.5 billion in the international bond markets between 2009 and 2014 with the help of Goldman Sachs (who underwrote the bonds), although the US Department of Justice has stated that some USD 4.5 billion was diverted to offshore bank accounts and shell companies.
For its role, Goldman Sachs received USD 600 million in fees.
🔥 The 2020 Settlement
In July 2020, Goldman Sachs reached a USD 3.9 billion settlement with the Malaysian Government (“2020 Settlement”). As part of the 2020 Settlement, Goldman Sachs:
Made an initial USD 2.5 billion payment in September 2020; and
Guaranteed the return of USD 1.4 billion of 1MDB assets seized by authorities worldwide.
In addition, the parties also agreed that Goldman Sachs would make an interim payment of USD 250 million if Malaysia didn’t receive at least USD 500 million in assets by August 2022.
In return, the Malaysian government promised not to pursue any criminal charges against Goldman Sachs.
🚨The Issue
The current disputes centre on whether Malaysia has recovered at least USD 500 million as of August 2022 and whether any interim payment is due.
Goldman Sachs has since filed for arbitration with the London Court of International Arbitration, stating that the Malaysian government had violated its obligations to appropriately credit assets against the guarantee provided by Goldman Sachs in the 2020 Settlement and to recover other assets.
This move seems to have caught Malaysia by surprise.
Let’s see what happens next!
Sour Milk
Here is a milking arrangement gone sour.
🍿 Background
New Zealand dairy companies Synlait and A2 Milk (Synlait’s second-largest shareholder with a 19.8% stake) entered into a Nutritional Powders Manufacturing and Supply Agreement (NPMSA).
The NPMSA provided Synlait with exclusive manufacturing and supply rights over products covering stages 1 to 3 of A2’s infant-formula products – including A2 Platinum – for sale in China, Australia and New Zealand.
🔥 Sour Milk
Last month, A2 Milk announced via a statement on the New Zealand stock exchange (NZX) that it had issued a written notice to Synlait to cancel its exclusivity arrangement.
Synlait disputes A2 Milk's right to do so.
Both parties entered into a 20-business day period of good faith negotiations but failed to reach a resolution.
They are now heading to arbitration, although Synlait insists that its exclusivity remains until the dispute is settled.
Can Synlait continue to milk their arrangement?
We shall see.
Spotlight: Colin Seow
⚒️ What do you do?
I currently practise as an independent arbitrator, advocate and mediator under Colin Seow Chambers LLC. I commenced my independent practice after stepping down from more than 12 years of service in various judicial capacities in the Supreme Court of Singapore.
My practice covers a broad spectrum of commercial disputes, including trade financing disputes, building and construction disputes, corporate disputes, financial and banking disputes, shipping and commodities disputes as well as disputes falling within the ambit of Singapore’s arbitration laws. I also have been involved in investor-state dispute settlement matters.
🏆 What is your proudest achievement?
I am blessed to have garnered trust and confidence from legal practitioners and arbitral institutions to be appointed as arbitrator in a handful of cases shortly after leaving the judiciary.
These appointments came with a good spread of sitting as presiding, sole and co-arbitrator in commercial arbitrations administered by key institutions such as SIAC, HKIAC and LCIA. I am grateful for this relatively swift transition to becoming an arbitrator within a year’s span.
Also in recent memory is my successful attempt in taking the NY Bar exams recently to pave the way to becoming tri-qualified in Singapore, UK and US.
⌛ There are now 25 hours in a day! How do you spend your extra hour?
I certainly hope this would give even more reason for me to spend my free time outdoor, with my trusty camera in hand. For those who know me well, I love not just photography but also the process of making images with my Leica M camera.
🚀 If you weren't a lawyer, what would you do?
Most likely I would have ended up developing a career in the science or engineering field, given in my earlier years of education I focused my studies heavily on the triple sciences. Even as a judge and lawyer, I often found myself fascinated reading news of scientific and technological breakthroughs.
😋 Your favourite food haunt
When in town area in Singapore – Funan Mall where I would frequent Ya Kun Kaya Toast for its iconic kaya toast and Nanyang-style coffee, and Makanan Bollywood Restaurant for my morning roti prata breakfast fixes with my good friends and colleagues.
My picture shows me abroad with my own homemade kaya toast – made using Ya Kun’s very own kaya jam as the key ingredient.
Food Feature
Named after its chef - also the queen of Thailand street food - Jay Fai is a Michelin-starred street food stall that you need to try out if you're ever in Bangkok.
Aside from their signature crab omelette, try their drunken noodles, tom yum soup, and stir-fried yellow curry!
Open from Wednesday to Saturday, walk-ins only (unfortunately, the queues can get rather long).
Details: Instagram Google Maps
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