(Incorporated in Canada and continued in Bermuda with limited liability)
TORONTO, July 8, 2016 /CNW/ - HMH China Investments Limited (the "Company") wishes to announce that Allied Glory Investment Limited ("Allied Glory"), an indirect wholly owned subsidiary of the Company, has on 8 July 2016 applied for arbitration in the People's Republic of China ("PRC").
Rosedale Hotel Guangzhou Co., Ltd ("Rosedale Guangzhou") is a sino-foreign co-operative joint venture company established in the PRC between Allied Glory and an independent third party ("PRC Partner"), engaging in the management of and investment in Rosedale Hotel & Suites, Guangzhou, a luxury four-star hotel located in Guangzhou, the PRC.
Pursuant to the joint venture agreement between Allied Glory and the PRC Partner, the co-operative period for Rosedale Guangzhou is a period of 50 years commencing from 15 January 1987. Pursuant to the approval granted by the Foreign Economic and Trade Commission in May 1992, Rosedale Guangzhou obtained a 30 years business licence which will expire in January 2017 but such approval also provided that the business licence could be extended for a further period of 20 years, subject to certain conditions and the official approval from the PRC government authorities prior to the expiration in 2017.
The PRC Partner has, however, up to the date hereof refused and/or failed to cooperate with Allied Glory to apply for such extension. Allied Glory has, therefore, on 8 July 2016 applied to the China International Economic and Trade Arbitration Commission for arbitration of the matter, seeking an arbitral award that the PRC Partner do cooperate with Allied Glory to jointly apply to the relevant government authorities to extend the business licence of Rosedale Guangzhou for a further period of 20 years. Allied Glory is currently seeking legal advice in relation to the above matter.
SOURCE HMH China Investments Limited
For further information: Mr. Chin Shing Tong, the Chairman, President and Chief Executive Officer of the Company at (852) 2831 8228