NAM TAI PROPERTY INC.
Form 6-K
CONTENTS
The Board of Directors of Nam Tai
Property Inc. (the “Company”), a company incorporated under the laws of the British Virgin Islands, is providing the following updates. Unless otherwise indicated, references here to “$” are expressed in U.S. dollars.
Hong Kong Arbitration and Litigation Update
Set-Aside Proceedings
As previously disclosed in the Company’s filings with the Securities and Exchange
Commission, on April 23, 2021 the arbitrator (the “arbitrator”) in the Company’s ongoing arbitration with Greater Sail Limited (“GSL”) in Hong Kong granted GSL an interim preservation order requiring, among other
things, that the Company not dissipate the funds held by Triumph Commitment (Hong Kong) Limited, a subsidiary of the Company, in its Hong Kong Credit Suisse account (the “CS Account”) and any traceable proceeds of monies that GSL paid the
Company under the previously disclosed private placement conducted in 2020 (whereby the Company issued and sold approximately 16.1 million shares of the Company for approximately $146.9 million). On April 29, 2021, GSL obtained an
order before the High Court of the Hong Kong Special Administrative Region, Court of First Instance (the “Hong Kong Court”) enforcing the arbitrator’s interim preservation order (the “HK Preservation Order”). On
April 6, 2023 the arbitrator issued a partial award, dismissing all of GSL’s claims against the Company, and on April 29, 2023, the arbitrator issued an order discharging the interim preservation order, effective as of May 8,
2023. The HK Preservation Order, however, remains in place.
Further, as previously disclosed, on April 20, 2023, GSL initiated proceedings before
the Hong Kong Court to have the arbitrator’s first partial award set aside. In these proceedings, the Hong Kong Court was also asked to determine the status of the HK Preservation Order. A hearing took place on October 4, 2023, as
scheduled. The Hong Kong Court adjourned the hearing and is scheduled to continue with the hearing on December 15, 2023.
Anti-Suit Injunction
As previously disclosed, in December 2021 GSL filed a lawsuit (the “GSL Shenzhen Litigation”) before the Shenzhen Intermediate People’s
Court in the People’s Republic of China against the Company, Nam Tai Group Limited (“NTG”), Nam Tai Investment (Shenzhen) Co., Ltd. (“NTI”), and Zastron Electronic (Shenzhen) Co. Ltd. (“Zastron”), each of which are
wholly owned subsidiaries of the Company, alleging that GSL owns (i) equity held by NTG in NTI representing a $45 million capital contribution, and (ii) equity held by NTI in Zastron representing a RMB$50 million capital
contribution. On July 7, 2023, the arbitrator issued an anti-suit injunction ordering GSL to take all steps necessary to withdraw the GSL Shenzhen Litigation.
On August 29, 2023, GSL took out an application to set aside the arbitrator’s anti-suit injunction before the Hong Kong Court. The application is
set to be heard on December 11, 2023.
West Ridge Update
As previously disclosed, on April 7, 2022, the British Virgin Islands Commercial Court in the Eastern Caribbean Supreme Court (the “BVI Court”)
delivered a judgment against the Company and in favor of West Ridge Investment Company Limited (“West Ridge”) in the amount of $23.8 million (the “West Ridge Judgment”). The West Ridge Judgment stemmed from a settlement and
indemnity agreement between the Company and West Ridge. As further disclosed, on July 27, 2023, the Eastern Caribbean Court of Appeal dismissed the Company’s appeal and affirmed the West Ridge Judgement. The BVI Court has also awarded West
Ridge legal fees and costs associated with this litigation; however, these costs are yet to be quantified.
On October 9, 2023, the BVI Court entered
an order staying West Ridge’s enforcement of both the West Ridge Judgment as well as the forthcoming legal fees and costs order. Pursuant to the stay, the Company is required to set aside funds sufficient to satisfy the West Ridge Judgement and
the forthcoming legal fees and costs order from the CS Account into an escrow account once the Hong Kong Court has lifted the HK Preservation Order over the CS Account.