Peregrine Derivatives issues writ over Pacific Reward share deal

PUBLISHED : Tuesday, 29 December, 1998, 12:00am
UPDATED : Tuesday, 29 December, 1998, 12:00am


Peregrine Derivatives has launched legal action over a share transaction which fell through when the trading arm went into liquidation.

Pacific Reward Investments signed a contract with Peregrine on December 18 last year to buy 10 million ordinary shares of Hung Hing Printing at a future date, according to a High Court writ.

The agreement stipulated, it is claimed, that the appointment of a provisional liquidator would cause an early termination of the deal.

This being the case, each party would be obliged to provide a statement of calculations of a settlement amount under the agreement, the writ said.

Liquidators were appointed to wind up Peregrine Derivatives in March.

Liquidators PriceWaterhouseCoopers, on behalf of Peregrine, claim Pacific Reward has failed to provide such a statement or to pay the amount due in respect of the transaction.

The breaches had caused Peregrine to suffer loss and damages, it is claimed.

On a cash settlement basis, the amount payable under the transaction came to $4.9 million, it is claimed.

Subtracting amounts due to Pacific Reward, Peregrine claimed $4.3 million.

Peregrine also is seeking interest on the sum allegedly due.