[Alphabiz=(Chicago) Reporter Kim Jisun] Hanwha Investment & Securities Co. and eBEST Investment & Securities Co. lost in appeals related to asset-backed securities (ABCP) affiliated with Chinese state-run companies. If they lose in the Supreme Court, these securities firms will have to pay large-scale compensation to Hyundai Motor Securities and BNK Investment & Securities.
According to the investment banking (IB) industry on the 17th, the Seoul High Court ruled partially against Hanwha Securities and eBEST Investment & Securities in a lawsuit for the return of unfair profits related to the bankruptcy of the China Low Energy Chemical Group (CERCG) on the 13th. The Seoul High Court decided that the Plaintiff's claim was cited with merit within the scope of recognition.
The amount of litigation claims totaled 113.5 billion won invested by Hyundai Motor Securities, BNK Investment & Securities, KB Securities, Busan Bank and KEB Hana Bank. The ratio of responsibility in this appeal was 5 to 5. Accordingly, Hanwha and eBEST Investment & Securities will appeal to the Supreme Court after paying 56 billion won in the form of provisional payments. If the appeal is maintained in the Supreme Court, Hanwha and eBEST Investment & Securities will not be able to get 56 billion won back.
Hanwha and eBEST Investment & Securities said, "We will actively appeal through legal procedures through legal representatives."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
