Esprit Holdings Faces Legal Action Over Pre-Bankruptcy Asset Transfers

Reuters01-08
Esprit Holdings Faces Legal Action Over Pre-Bankruptcy Asset Transfers

Esprit Holdings Limited has announced it is facing litigation initiated by the bankruptcy trustee of its former subsidiary, Esprit Europe B.V., following the latter's insolvency filing. The trustee has filed a writ of summons with the Amsterdam District Court, alleging that prior to its bankruptcy, Esprit Europe transferred shares in Esprit (Holdings II) B.V.—valued at EUR56.48 million but sold for EUR10.2 million—to Million Success Resources Limited, an indirect wholly-owned subsidiary of Esprit Holdings. The trustee also claims that Esprit Europe transferred intra-group claims and debts totaling approximately EUR39.5 million to Esprit Holdings, offsetting them against shareholder loans. Esprit Holdings maintains that the claim is without proper factual merit, citing Hong Kong law, which precludes enforcement of such foreign judgments. The company is preparing to take legal action to protect its interests and those of its shareholders, while the financial impact of the proceedings remains uncertain.

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