BVI Company News

On June 11, gasoline retail trading company South Pacific Petroleum Corp. (SPPC) has filed civil complaint against three of its former executives for the return of more than $3.2 million in allegedly unpaid loans. It is the fourth lawsuit against former SPPC CEO and President Brian Suhr, former Executive Vice President and Chief Operating Officer Michael Hahm, and SPPC director Gi Tae Kim.

SPPC alleged the defendants of breaking their fiduciary duties as SPPC executives by authorizing the loans to the BVI-registered Sherwood, most of which haven’t been paid back; now the company seeks the return of more than $5.6 million. In the last complaint it was stated that, at the time of these loans, Suhr, Hahm and G.T. Kim knew that it was “a remote British Virgin Islands shell corporation with little or no tangible assets.” Nevertheless they caused SPPC to make loans to the BVI company without taking any security in return.

Suhr and Hahm declined to comment these allegations. The other defendants of the lawsuit, which are listed as Sherwood stockholders and which could not be reached, are W. J. Kim, Jae Jyoon Rhim and Jin Hee Hung.

The three previous complaints alleged that Suhr, Hahm and Kim used the loans made from October 20, 2005 to June 2, 2008, to fund their other business ventures; the last filed lawsuit does not state the purpose what these loans were used for.

The fund GAM Trading II – GBP 1.25XL, domiciled in the British Virgin Islands, enabled investors to benefit from 1.25x leveraged exposure to the performance of GAM Trading II, a portfolio of hedge funds. The underlying funds can trade currencies, fixed income instruments, equities and commodities, and will be able to take long or short positions and use futures and options. Usually the fund is holding 30 to 50 funds, and now it targets absolute returns of 8%-13% per year over three to five-year periods.

The BVI-registered fund invests mainly in systematic trading and global macro funds, but may also include a small allocation to other non-directional strategies. GAM Trading II, managed by the group’s multi-manager team, last year has generated an 8.6% return. Since its inception in 1997, the vehicle has delivered positive returns every year.

GAM head of UK mutual funds Martin Harrison has said in his comments that “the new leveraged fund is designed for investors with a strong positive view of GAM Trading II, who want to enhance their exposure for the same amount of capital. Minimum investment amount is £15,000, with initial charge of 5% and annual management charge of 1.7%.

On May 27, 2009, the Canadian company Ballyliffin Capital Corp. provided an update on the status of its proposed qualifying transaction announced on March 25, 2009. Ballyliffin had negotiations with East Top International Group Limited, a privately held company headquartered in the British Virgin Islands and having several operating subsidiaries situated in the Peoples Republic of China, in connection with a proposed arm’s length qualifying transaction. Now the company announces that a Letter of Intent has been executed with the BVI company, which is engaged in forest operations, management, logging and timber processing and trade.

Currently, Ballyliffin and East Top are in discussions with the TSXV regarding structural matters of the transaction, and further details will be announced after a definitive agreement will be signed by them.

The principal business of East Top International Group Limited includes the ownership of natural forest lands, wood fibre operations, manufacturing and other operations producing downstream wood products.

Marani Brands, Inc., the U.S. company engaged in developing, positioning, marketing and distributing fine wine and spirit products in the United States and international markets, made an announcement that it has entered into an exclusive import and distribution agreement with Fuente Marketing Ltd., registered in the British Virgin Islands. According to the agreement, the British Virgin Islands company will import to the United States the award-winning spirit - Cigar-in-the-Bottle. Currently it is distributed in various states across the U.S., as well as in the Dominican Republic, Puerto Rico, and the Virgin Islands.

Cigar-in-the-Bottle is the product that exactly corresponds to its name - it is a cigar which is encapsulated inside the Grand Pommier XS spirit, using a special humidifier - making an illusion that the cigar is suspended in the Calvados spirit. This gold-medal product has been featured in films, television, and various publications.

BVI-registered mineral exploration company Talon Metals Corporation announced that it has concluded an agreement with a private company Kmine Holdings Ltd., to acquire full interest in its Brazilian subsidiary Bancor Mineracao Ltd. Bancor which is to be purchased by BVI company has eight areas in the Sergipe and Alagoas States of Brazil, comprising a total of 36,402 hectares, for which it already holds or has applied for potash exploration licenses.

The existing exploration data, concerning the acquired project, will be reviewed as part of Talon’s exploration program. Under the terms of the agreement with Kmine, the BVI company has acquired a 100% interest in Bancor for cash payments of US$20 million, payable over 10 years, of which US$375,000 was payable on closing of the agreement. By terms of the agreement, Talon may withdraw from it at any time and return the shares of the Brazilian company to Kmine.

Mr. Stuart Comline, President and CEO of Talon, has commented that the acquisition of the potash exploration licences in Brazil answers company’s strategy to acquire interests in holdings that have the potential to become substantial projects.

Also, Talon was recently awarded the exploration rights from the Departamento Nacional de Produçao Mineral (”DNPM”) to the Juruena Gold Project in Brazil. Now the BVI company undertakes more detailed assessment of previous mining and exploration at Juruena, to formulate a strategy to maximize the value of the project for Talon.

In this press release, the company also published an update on its agreement with the BVI company Saber Energy Corp., and informed that it continues due diligence review on the Saber CBM projects in Botswana.

An AIM-listed group London Town that operates 266 pubs because of some financial problems had to take three short-term working capital loans over the past 13 months. The company received three loans, totalling £6m, from the British Virgin Islands-registered Burac Invest and Trade, and it has been paying 10-15 per cent interest rates on these loans. On behalf of the Horizon Charitable Trust, this BVI company holds 48.4 per cent of the issued share capital of London Town.

London Town was established as a residential property developer. It came into the sphere of pub trade just in 2006 when it purchased 167 pubs for £94.7m from retired property investor.

The deal which was known as the first step in building London Town into a significant player in the pub industry, was funded through a £72.8m loan from Anglo Irish Bank, a £14m discounted bond issue and a £14.3m share placing. However, there is a drop in the pub industry now, so the acquisition along with three other smaller deals of London Town with the BVI company that followed in the next months, seems to be not in time.

BVI-registered Pansoft Company Ltd announced that it has signed a Solution Provider Agreement with Microsoft China, Co., Ltd, with the purpose to develop centralized financial and accounting solution for Microsoft’s Dynamics AX, a comprehensive Enterprise Resource Planning (ERP) software on May 11, 2009. Both companies will jointly announce the co-operation and promote the new solution together in the vast ERP market in China.

Pansoft BVI is the first and only Chinese company selected by Microsoft Business Solutions group as a Solution Partner for Dynamics AX. In addition, the business relationship with Microsoft helped the BVI company gain visibility; it designed and developed the first centralized financial and accounting application for PetroChina, which successfully brought PetroChina’s multiple branches and legal entities that had been using different accounting principles and calculated in various foreign currencies into one system and one platform.

Pansoft is going to create the new centralized financial and accounting application that will be major part of Microsoft’s Dynamics AX total solution. Pansoft’s centralized financial and accounting solutions will offer various distinctive features including consolidations, financial analysis, financial reporting and budgeting, which can significantly enhance operating efficiency and simplify financial and accounting procedures. The application is also highly scalable and can be used for a medium Chinese firm with a single organization, as well as large business with various subsidiaries and overseas offices.

In the end of April Yucheng Technologies Limited, a BVI-registered  provider of IT solutions and services to China’s banking industry, announced that it will deploy a stand-alone credit card call center for China Minsheng Bank - national joint-stock commercial bank of China, listed on the Shanghai Stock exchange and having a network of more than 25 branches covering major cities in China.

The credit card call center with brand new systems designed to track and avert fraud will utilize BVI corporation’s leading software to decrease wait-time and increase risk control. Also, Yucheng’s technology will help to lower bank’s credit card risk exposure.

CEO of Yucheng Technologies Mr. Weidong Hong commented, “As China’s number one provider of Channel Solutions, including call center and online banking, we are pleased to offer innovative solutions that add a competitive advantage, while lowering operating risk. We look forward to further developing our relationship with Minsheng and our presence in this market.”

The newly implemented system will enable cardholders to review multiple accounts seamlessly, and will streamline many business practices. Yucheng is the number one provider of call center solutions, which enable banks to better communicate with customers, to the banking industry in China.

A-Power Energy Generation Systems, Ltd., BVI-registered corporation providing distributed power generation systems in China, announced that it has signed contracts with the subsidiaries of Anhui Wenergy Co., Ltd., for building two micro-grid electricity-generation systems based on biomass, in Anhui Province of China. The two contracts with the company, listed on the Shenzhen Stock Exchange, and distributing electric have total value of US$75.3 mln.

By terms of the signed contracts, A-Power will design, assemble, install, test and deliver two 30MW electricity-generation systems with biomass used as a fuel at Wenergy’s DG plants in Shucheng County and Hanshan County in Anhui Province. The two projects are expected to be completed and come into operation by August 2010.

A-Power’s Chairman and CEO Mr. Jinxiang Lu said in his comments, “We are extremely excited to become the sole provider for Wenergy’s two high-profile alternative energy projects in one of China’s important industrial provinces … With these two projects, A-Power has broadened its DG coverage to another important industrial company in China.”

Anhui Wenergy Co., Ltd., which is listed on the Shenzhen Stock Exchange, distributes electric power in Anhui Province and Eastern China. In January 2009, Wenergy announced that three of its subsidiaries gained US$20 mln worth of subsidiaries from the Chinese government for the voluntary shutdown of five coal-fired electrical generators.

The British Virgin Islands-based Pansoft Company Limited dismissed MSCM LLP as the company’s independent registered public accounting firm. The decision was approved by the Audit Committee of the Board of Directors of the BVI company.

Pansoft Company Limited announced that the reports of MSCM on the financial statements of the BVI company for the years ended December 31, 2008 and 2007 contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principle. Also, concerning its audits of the years 2008 and 2007, there were no disagreements with MSCM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

The BVI company also announced that it engaged GC Alliance Limited as its independent registered public accounting firm. The change was approved by the audit committee and Board of Directors of Pansoft Limited.

Also, on April 23, 2008 the Compensation Committee of the Board of Directors of the BVI company determined to grant certain one-time cash bonuses to its Chairman Hugh Wang, and  the Interim Chief Financial Officer Allen Zhang. These bonuses are part of the cash prize of $160,986 awarded to the company by the government of China for its successful listing in an overseas stock exchange.