XIAMEN FIT IMPORT & EXPORT CO., LTD.
UBS unit sues CIMB for alleged property rights infringement
click rate:2193 issue time:2007-03-10 08:12
Feb. 8, 2007 (China Knowledge) – A unit of UBS AG is suing China International Marine Containers (CIMB) (Group) Co. Ltd. <200039>, seeking RMB 310 million in compensation for alleged infringement of its property rights.


Filed in a court in Jiangsu province by Rui Hua Investment Holding Ltd, the suit alleged that three subsidiaries of CIMC, have infringed on the property rights of Rui Hua Investment.


The statement did not specify the nature of the infringement but previous media reports have quoted court papers filed by Rui Hua, a special purpose vehicle set up by UBS, as alleging that CIMC had transferred assets of container producers Yangzhou Tongyun and Yangzhou Tonglee to its own subsidiaries through improper transactions.


CIMC said it had not infringed on any rights of Rui Hua though it declined to elaborate on the dispute. UBS officials in Beijing said they were unaware of the issue and Rui Hua could not be contacted.


State media have reported that in 2005 Rui Hua bought RMB 800 million of non-performing assets, which included some of the assets of Yangzhou Tongyun and Yangzhou Tonglee, from State-owned Cinda Asset Management Corp.


Prior to that purchase, CIMC subsidiaries had taken over the management of Yangzhou Tongyun and Yangzhou Tonglee.