GGC reveals progress in case of missing raw material inventory

GGC revealed the progress of the case regarding the shortage of raw materials, confident in the transparency, confirming that the verdict will benefit the company. It is expediting the lawsuit against the damages caused by both former executives and related parties. As for the compensation case, ACAP has already set aside a damage reserve in 2021, so there will be no negative impact on the company's performance. Mr. Kritsada Prasertsukho, Managing Director of Global Green Chemicals Public Company Limited (GGC), revealed the progress of several lawsuits that have been finalized in 2024, which has had a very positive effect on the company. The following are the important cases: The case in which the company was the plaintiff suing the business partner for breach of the compromise agreement, which was finalized in February 2024 by the Appeal Court ruling for the defendant to pay the company 299.90 million baht, plus interest from the date of breach of contract until payment is complete. It is currently under enforcement. The case in which the company was the defendant for breach of contract for the use of product storage tanks and infringement, which had a capital claim of 449.77 million baht, was finalized in July 2024 according to the Appeal Court's ruling to dismiss the case against the company, which resulted in the company not having to pay the capital claim. In addition, on September 3, 2014, the Company informed the Stock Exchange of Thailand about the verdict in the case in which the Company was a defendant, which was a case in which the former executives collaborated with Anatta Green Co., Ltd. (the business partner) to create false raw material purchase documents in order for the business partner to use the documents to withdraw a loan from Asia Capital Group Co., Ltd. (Public) (ACAP), and the business partner transferred the right to receive money under the contract to ACAP. After the Company discovered the problem of raw material inventory in mid-2018, ACAP brought documents to demand that the Compa ny pay the debt for 11 raw material items, but the Company checked and found that the documents were not in the Company's system and there was no evidence of delivery of raw materials from the business partner. Therefore, the Company refused to pay. Later, in August 2018, ACAP filed a lawsuit with the Civil Court, demanding that Anatta and the Company jointly pay damages. The Court of First Instance and the Court of Appeal ruled that the Company must pay damages to ACAP in the amount of 289.56 million baht, with interest at 15 percent per year. If the Company does not pay the debt in full, Anatta To pay the remaining debt, the Company filed an appeal and on September 3, 2024, the Supreme Court ruled to amend by reducing the interest rate from 15 percent per annum to 7.5 percent per annum from the date of default of each contract until April 10, 2021 and 5 percent per annum from April 11, 2021 onwards, totaling approximately 400 million baht. In 2021, the Company had already set aside a provision for damages f rom the said case in the amount of 444 million baht, allowing the Company to reverse the provision of approximately 44 million baht, therefore, there was no negative impact on the Company's performance whatsoever. However, the actions of the former executives and Anatta Company as mentioned above have caused damage to the Company. The Company has filed a criminal complaint against the said person and has also demanded civil compensation. The case is currently under the legal process. In addition, the Company has sued the former executives to recover damages from the aforementioned case. The court has issued a final judgment that the former executives are guilty and ordered them to pay all damages back to the Company, which is currently under enforcement. The Company has taken serious and continuous legal action, resulting in significant progress in various cases as follows: Progress of criminal cases: 3 cases are in court, 1 case has been convicted, 1 case is in the prosecutor's office, and 4 cases are und er investigation. Progress in civil cases: In cases where the company is the plaintiff, there are 5 cases. The company has won all cases and almost all cases have reached a final verdict. In cases where the company is the defendant, there are 6 cases. The company is under consideration by the court in 2 cases. The company has won 3 cases, except for the above cases. 'Throughout the past, GGC has not been indifferent to the issue of raw material shortages in order to prove the transparency of the company and for the continuous benefit of all shareholders,' said Mr. Kritsada. Source: Thai News Agency