Mirae Asset Global Investments has launched a full-fledged response by forming a defense counsel consisting of seasoned lawyers amid a legal dispute with China's Anbang Insurance over the termination of a $5.8 billion contract to sell hotels in the U.S.
Mirae Asset announced on May 11 that it will proceed with "answer and counterclaim" against the lawsuit filed by Anbang Insurance.
To that end, Mirae Asset appointed Peter & Kim, a law firm specializing in international disputes, and Quinn Emanuel, the largest U.S. law firm specializing in lawsuits, to respond to the U.S. lawsuit.
In addition, Greenberg Traurig, a law firm in the U.S., and Yulchon, a South Korean law firm, that consulted the buyer's side in negotiating the deal, also play a role in supporting the lawsuit.
Mirae Asset signed a deal with Anbang Insurance in September last year to buy 15 U.S. hotels owned by Anbang for a total of $5.8 billion and paid a down payment of $580 million(about 700 billion won). Of the total acquisition, $1.6 billion is scheduled to be paid in the form of investment at the end of the deal.
Mirae Asset was scheduled to pay the balance by April 17, the scheduled date of closing the transaction, but the implementation of the contract failed as Anbang Insurance failed to secure the title insurance, the condition precedent.
Mirae Asset said, "Fidelity National, the largest title insurance company in the U.S., and all four insurance companies -- First American, Old Republic and Stuart -- refused to issue title insurance for 15 hotels that are subject to sale," adding, "The reason for the rejection was because Anbang was sued by a Delaware court in connection with hotel ownership."
Mirae Asset explained, "Anbang Insurance did not inform the existence of the lawsuit in the first place, but only after Mirae Asset found it first in February this year, it acknowledged that the above lawsuit is pending."
In response, Mirae Asset sent a default notice to Anbang Insurance on April 17 in accordance with the sales contract. Since then, it terminated its sales contract on May 3 after Anbang Insurance failed to resolve its breach of contract within 15 days.
In the meantime, Anbang filed a lawsuit with the Delaware court against Mirae Asset on April 27, and the pleading date for the above lawsuit was set for Aug. 24 this year.
Mirae Asset says the sales contract has been duly terminated and that Anbang Insurance should return $580 million (about 700 billion won) in down payment.
