Arricano Real Estate (ARO)


Arricano wins arbitration award in Sky Mall wrangle

The London Court of International Arbitration has issued a further award in favour of Arricano Real Estate in the ongoing arbitration case with Stockman Interhold SA.

The dispute concerns a call option agreement (COA) between Arricano and Stockman, dated 25 February 2010.

The COA provided for Arricano┬┤s right to purchase all of Stockman┬┤s shares in Assofit.

As previously announced, all of Assofit's assets, including Sky Mall, have been transferred to other legal entities.

In its latest award, the tribunal has found that Stockman is in breach of the COA and has taken 'steps deliberately to dissipate and misappropriate Assofit's assets'.

As a result, the tribunal has ordered Stockman to transfer, or procure the transfer of, the option shares to Arricano within 30 days of the award. Upon registration of the transfer, Arricano shall pay to Stockman the option price minus damages, which when netted out brings the balance to nil.

If Stockman does not transfer or procure the transfer of the option shares, Arricano may elect instead to claim damages in lieu of the share transfer.

Chief executive Mykhailo Merkulov said: "We are delighted with the arbitration award from the LCIA and the decision by the tribunal that Arricano has acted properly in its dispute against Stockman's actions. We now hope that Stockman will comply with the terms of our original agreement which we believe will help us in our efforts to regain control of Sky Mall itself."

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