Delis v. Yolarno was upheld by the judge and was entitled to recover an advance payment of $6 million for the acquisition

On January 19, Delis issued a statement saying that it had recently received a judgment document from the Supreme Court of New South Wales, Australia, and the presiding judge believed that Delis had not violated its fiduciary duty, but had been deprived of its rights. Therefore, Delis has the right to recover the advance payment from Yolarno. The presiding judge will render a judgment in support of Delis' claims in due course.

According to Delis' announcement, the main content of the presiding judge's conclusion and judgment was that the presiding judge believed that Delis had not breached its fiduciary duty, but had been deprived of the right to terminate the Share Sale and Subscription Agreement pursuant to paragraph 5 of the Extension Letter, and Delis had issued a valid notice of termination on June 30, 2016, although it did not reach the level of "trigger event" at that time. Therefore, Delis has the right to recover the advance payment from Yolarno. The presiding judge will render a judgment in favour of Delix's claim in due course and decide to postpone the trial of the case in order to calculate the interest to be received by Delix and the cost of proceedings in Delis. Under the agreement reached between the parties, the cross claim will be dismissed and the judgment will be postponed until the final judgment of the case.

The Court renders the following judgment: the above case is postponed to February 7, 2022 or other times, and the parties are hereby ordered to negotiate the judgment to be rendered by the Court and to submit the proposed decision not later than 24 hours before the postponement of the hearing.

In September 2015, Delix announced the commencement of a 45% stake in Yolarno. In February 2016, delice paid an advance payment of $6 million to Yolarno. However, in February 2019, Delex announced the termination of the restructuring as the parties to the transaction were unable to determine the final purchase price in accordance with the Share Sale and Subscription Agreement.

However, Delis has not been able to recover the $6 million advance payment. On 27 March 2020, Delis announced that it had filed a lawsuit with the Supreme Court of New South Wales, Australia, suing Yolarno for a full refund of the $6 million advance payment and the corresponding interest.

It is understood that Yolarno is an Australian beef slaughtering, processing and sales company. Although it failed to acquire Yolarno, Delis has been expanding in the beef sector, and currently, Delis imports beef from Australia, New Zealand and South America. And the processing and trade logistics project that processes 300,000 beef cattle per year has been put into production, and the production capacity is gradually being released.

For the impact of the incident, Delis said in the announcement that after the trial, the Supreme Court of New South Wales, Australia, intends to make a judgment to support Delix to recover the advance payment of 6 million Australian dollars and corresponding interest, and decided to postpone the trial. If the advance payment and the interest actually incurred by Delleix are recovered, Delex may reincarnate the impairment losses on the assets accrued in the previous period to increase profits.

This article originated from Blue Whale Finance