Soccer boot maker XPD’s major shareholder is taking it to court
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The major shareholder in Chinese soccer boot maker XPD is taking the company to court.
Late last year, investment company Mejority Capital (ASX:MJC) wrote down its investment in XPD (ASX:XPD) to zero and commenced legal action to access documents to determine if it could sue for damages.
A directions hearing was held on February 7, at which XPD asked for an adjournment on the basis its solicitors had only been instructed two days prior and required a mandarin translation of documents – as well as factoring in the holidays over the Chinese New Year period.
This was despite Mejority first making XPD aware of the claim in August.
“XPD had been aware of this pending claim since August 2 and has apparently taken no action over the following 6 months,” Mejority said in an ASX announcement.
“The original application was filed with the court on 21 December 2017 and we attempted to serve [law firm] HWL Ebsworth only to be told that they had no instruction to accept service on behalf of XPD.
“XPD have two Australian-based Directors who should be able to handle the matter without translation and through the Chinese New Year.”
XPD last week requested a four-week adjournment to get its affairs in order. The court rescheduled the matter to April 11.
Shares in XPD have not traded since October 11 — and last sold at 3.3c.
Mejority told the market its holding in the company had diminished from $1 million to just $292,000 in a one-year period between June 2016 and June 2017.
The court case comes as MJC looks to sell off its “cash drain that is the company’s Hong Kong operations”, expected to settle later this week.