China’s Ourgame International Holdings Ltd has launched legal proceedings against a former director of the company over an unpaid loan and debts totalling almost HK$98 million (US$12.6 million).
According to information released by the company overnight, a civil complaint was filed on 10 January 2022 with the Fourth Intermediate People’s Court of Beijing Municipality against Merit Horizon Limited and Ms Fu Qiang for breaching a loan agreement and a letter of guarantee.
As previously reported by Inside Asian Gaming, Fu was one of three Ourgame directors expelled from the company in May for threatening to “cause obstructions and difficulties to the operation of the company” should it fail to divert proceeds from the sale of the World Poker Tour (WPT) to another firm they control, iRENA Group Co Ltd.
Ourgame subsidiary Allied Esports Entertainment Inc completed the sale of the WPT to US-based Element Partners LLC for US$105 million in July.
In a filing, Ourgame said it had provided a company called Fast Express Trading Limited with loans totalling HK$62.5 million (US$8 million) between 30 January and 6 February 2018, with a 30-day loan term. When Fast Express failed to repay any funds, Merit Horizon stepped in and signed another agreement to repay the loans, with Fu providing a letter of guarantee in favor of the company. However, no repayment of the loans has been forthcoming.
As a result, Ourgame is claiming HK$97.9 million from Merit Horizon and Fu for breach of contract and liabilities, with the amount said to include “the principal, accrued interests and liquidated damages incurred as at 31 December 2021.”
“The Company has also filed a report with the police force for the investigation of any wrongdoing which may have been committed in relation to the Merit Horizon Loan,” it said. “To the understanding of the Company, the relevant police force is in the course of investigation in this regard.”
Fu and another former director last year unsuccessfully convened a meeting of Ourgame shareholders to vote on the removal of seven existing directors over the sale of the WPT and use of funds.
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