Aidi Palace Says Shenzhen Court Rejects Claims In Dispute Over Shenzhen Aidi Palace

Aidi Palace (00286) said Guangdong Wanjia, its wholly owned subsidiary holding a 94.95% stake in Shenzhen Aidi Palace, filed a lawsuit with the Futian District People's Court in Shenzhen seeking legal relief after Zhu Yufei challenged the validity of Shenzhen Aidi Palace resolutions, refused to resign as the company's legal representative and refused to return company assets, according to ETNet. The group said the court noted that the Shenzhen Court of International Arbitration had ruled the so-called entrustment agreement invalid, and found the relevant shareholder and board resolutions valid. It added that because related administrative proceedings are still under review, the court will not rule on Guangdong Wanjia's request regarding the company seal of Shenzhen Aidi Palace. All of Zhu's requests were dismissed, and the group said it was not aware of any appeal having been filed. Aidi Palace also said Shenzhen Aidi Palace had sued Guangdong Wanjia over a provisional damages payment of about RMB 16.7 million, as well as preservation costs, guarantee fees, legal fees and other expenses related to the litigation. The court rejected that lawsuit in a ruling made last Friday, and the group said it was not aware of any appeal having been filed. The company has been suspended since February 21 last year and will remain halted until further notice.