Dyoll Group Limited has advised that the Company has recently been made aware, by its attorneys, of the existence of a suit against the Company brought by the Joint Liquidators for Dyoll Insurance Company Limited. The claim of one hundred and sixteen million, nine hundred and three thousand eight hundred and thirty six dollars ($116,903,836.00) is based on the issue of management fees that were charged by Dyoll Group Limited to its subsidiary, Dyoll Insurance Company Limited over a number of years.
Unfortunately, this claim, if successful, would materially affect the issue of solvency though it would not necessarily make the company insolvent given that the Company holds a Judgment debt in the order of US$3 million against Drax Hall Limited which is secured by a registered charge against the Drax Hall estate lands.
The Directors have sought preliminary legal advice and as a result have decided to postpone the Extraordinary General Meeting of the Company, which was scheduled to be held on September 28, 2007, without fixing a further date in the circumstances and will assess that matter after the November hearing date.
