31 Jul 2020
J Trust Asia (“JTA”) applied for an injunction against Group Lease in Thailand in March 2020 and today the Thai court denied JTA’s request and dismissed their injunction application.
Previously in March 2020, GL terminated the $50 million CD with JTA due to JTA’s intentional and bad faith actions against GL. JTA has had its rehabilitation claims in Thailand dismissed multiple times and JTA was ordered to pay damages of THB 685.5 million (more than USD $20 million) to GL that arose from the automatic stay put on GL as the court found that JTA acted in bad faith by filing a false rehabilitation claim.
The Thai court decision of JTA to pay THB 685.5 million to GL related only to JTA’s first automatic stay against GL. JTA, unsuccessfully, continued their rehabilitation claim against GL which resulted in GL being under a second automatic stay for nearly half of 2019, which caused an estimated THB 2,380 million (more than USD $72 million) in damage to GL. These two damage claims against JTA by GL total more than THB 3 billion (more than USD $93 million). GL has set-off the amount due from the terminated CD with these damages.
Due to GL’s decision to terminate the CD and offset it with damages caused by JTA, JTA asked the Thai courts for an injunction against GL in the amount of $ 50 million. Today, the courts denied JTA’s request.