Over US$5.8 Bil. Hotel Deal
Mirae Asset Global Investments announced on May 11 that it has decided to respond to the lawsuit recently filed by Anbang Insurance in the United States in partnership with international arbitration firm Peter & Kim, business disputes specialist Quinn Emanuel, South Korean law firm Yulchon, and Greenberg Traurig, the U.S. law firm that provided legal advice for Mirae during the past negotiations between Mirae and Anbang.
The two companies concluded a US$5.8 billion contract in September last year and Mirae made a down payment of US$580 million to purchase 15 hotels in the United States from Anbang. According to the contract, US$1.6 billion is scheduled to be paid in the form of investment at the end of the deal and US$3.6 billion is scheduled to be prepared from the outside.
However, Anbang failed to obtain the title insurance as a condition precedent by April 17 this year, the scheduled end date of the deal, as Fidelity National, First American, Old Republic and Stewart refused to issue complete title insurance policies regarding the 15 hotels. The four insurers did so because Anbang faced a lawsuit in Delaware with regard to its hotel ownership.
At first, Anbang did not inform Mirae of the lawsuit. Mirae discovered it in February this year, and then Anbang admitted that the litigation was pending.
Mirae sent a default notice in accordance with the contract on April 17, Anbang failed to redress the situation within 15 days, and Mirae canceled the contract on May 3. Mirae is claiming that the cancellation is reasonable and Anbang must return the down payment. On May 8, the Delaware Court of Chancery fixed Aug. 24 to 26 as their trial dates.