By Latrishka Thomas
Chinese investor Yida Zhang is facing a tight deadline, with just over a month to settle a payment exceeding $400,000 to Lux Locations for services rendered in facilitating the sale of a parcel of land in 2014.
Zhang, of Yida International Ltd, renowned for initiating the country’s first special economic zone, has been entangled in a prolonged legal dispute with the Antiguan real estate firm.
Zhang had engaged Lux Locations almost a decade ago to assist in acquiring land for a project, but he’d failed to pay the agreed-upon commission.
Lux Locations had sought $3 million in commission; a figure established in agreement with Zhang.
The case went as far as London’s Privy Council, which in June ruled in Lux Locations’ favour.
Due to Zhang’s persistent non-compliance with full payment, the High Court sanctioned Lux Locations to sell any shares owned by Zhang in his company, Yida International Investment Antigua.
The September 7 court order also imposed restrictions, preventing Zhang from disposing of or devaluing the shares. Zhang was mandated to provide necessary information for share valuation within seven days upon request.
A penal notice also cautioned Zhang about potential imprisonment for contempt of court in case of non-compliance, but Zhang remained unyielding.
Consequently, Zhang was found in contempt for failing to adhere to the order and was summoned to court yesterday to answer to a Judge.
In a last-minute effort, Zhang wired US$4,098,628.91 to Lux Locations’ bank account just hours before the hearing. Zhang’s lawyer, Dr David Dorsett, asserted that the debt was settled in full, transferred from a Hong Kong account to Antigua.
However, Lux Locations, represented by Thomas Roe KC and Andrew O’Kola, contested the adequacy of the amount, highlighting an outstanding balance of approximately $400,000.
The amount owed had increased due to legal fees and interest.
After extensive deliberation, the parties reached an agreement on the exact amount owed.
Justice Rene Williams ruled that if the claimed payment did not reflect in Lux Locations’ account by November 24, Zhang would spend 14 days in prison.
Additionally, if the remaining balance wasn’t satisfied by December 31, the developer would face further imprisonment.
