XI'AN, Nov 02, 2009 (SinoCast Daily Business Beat via COMTEX News Network) -- China Haisheng Juice Holdings Co., Ltd. (0359.HK), a Hong Kong-listed private juice maker in China's Mainland, is filing a lawsuit against Morgan Stanley International and Morgan Stanley Asia Limited, two subsidiaries of Morgan Stanley.
The case is about the currency swap contract between Haisheng Juice and Morgan Stanley International, which resulted in CNY 59.14 million losses for Haisheng Juice in 2008. Notably, Morgan Stanley Asia Limited is the credit rating consultant of the currency swap contract.
Pursuant to the contract, Haisheng Juice shall transact with the counterpart every month on the basis of a fixed exchange rate of CNY 6.828 against USD 1 and CNY 6.8555 against USD 1 respectively, to exchange USD 5 million and USD 3 million to Chinese Yuan accordingly. The duration of the contract was from July and August 2008 to 2013. Later, the contract was altered, in which, the exchange rate was changes and Haisheng Juice was given the right to terminate the contract before April 10, 2009 by paying the maximum amount of USD 38 million to the counterpart.
Soon after the contract was inked, the credit rating consultant asked Haisheng Juice to pay deposits for the deal in cash, which was turned down by Haisheng Juice. On April 2, 2009, Haisheng Juice filed a lawsuit to Xi'an Intermediate People's Court, claiming for compensation from Morgan Stanley International and Morgan Stanley Asia Limited, in that the credit rating consultant and the counterpart did not mention any deposits-related information, or the related risks and losses.
Morgan Stanley International on April 20, 2009 terminated the contract and asked Haisheng Juice for compensation of CNY 180 million or USD 26,283,603, which was refused by the Chinese company. One month later, Morgan Stanley International filed a lawsuit against Haisheng Juice, but the Commercial Court of England rejected the lawsuit. When ask of the case, insiders of Haisheng Juice and Morgan Stanley decline to comment.
Haisheng Juice is mainly engaged in the production and sales of concentrate fruit juice and related products. It has extended the reach to North America, Europe, Russia, South Africa, Australia and Asia. According to the interim report of the company, the export incomes that it earned from Australia, America, and Europe accounted for about 31.13% of China's total incomes from concentrate fruit juice export.
(USD 1 = CNY 6.82)
Source: www.nanfangdaily.com.cn (November 02, 2009)
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