Business

Court orders Sakae-linked GCM to be wound up

The High Court has ordered that an associate firm of Sakae Holdings be wound up by consent.

Sakae, which owns the Sakae Sushi chain, said yesterday that its liquidators will assess the Gryphon Capital Management (GCM) unit and "bring such claims as they consider appropriate".

The order comes after the most recent legal tussle in April involving GCM, which also manages the property investments of another Sakae associate firm called Griffin Real Estate.

The firm added yesterday that in light of the High Court's order, a Sakae claim against Gryphon shareholder ERC Holdings, former Sakae director Andy Ong and his associate, Mr Ong Han Boon, will no longer proceed.

The latest ruling follows a legal skirmish that began in 2013, culminating in a seven-week trial last year in which Sakae accused Mr Andy Ong of breaching his fiduciary duties while a director.

On April 7, High Court Justice Judith Prakash ordered Mr Andy Ong and associates Ong Han Boon and Ho Yew Kong to pay about $35 million to Griffin Real Estate Investment. Sakae is a minority shareholder in this company.

Mr Andy Ong was also ordered to pay Sakae $2.64m.

Sakae had also brought a suit against various people who allegedly conducted the affairs of Griffin Real Estate "in a manner that is oppressive and prejudicial" to the interests of Sakae.

Sakae founder Douglas Foo had said in April he was "relieved that justice is served". - THE STRAITS TIMES

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