Urgame files legal action against director in exile for loan debt

Chinese firm Ourgame International Holdings Ltd has launched legal proceedings against a former director of the company over an unpaid loan and debts totaling nearly HK $ 98 million ($ 12.6 million).

According to information released by the company overnight, a civil lawsuit was filed on January 10, 2022 with the Beijing Municipal Fourth Intermediate People’s Court against Merit Horizon Limited and Ms. Fu Qiang for violating a loan agreement and d ‘a letter of guarantee.

As previously stated by In Asian games, Fu was one of three directors of Urgame expelled from the company in May for threatening to “cause hindrance and difficulty in the operation of the company” if he failed to divert the proceeds from the sale. of the World Poker Tour (WPT) to another company they control, iRENA Group Co Ltd.

Urgame subsidiary Allied Esports Entertainment Inc completed the sale of the WPT to U.S.-based Element Partners LLC for US $ 105 million in July.

In one filing, Ourgame said it made loans totaling HK $ 62.5 million ($ 8 million) to a company called Fast Express Trading Limited between January 30 and February 6, 2018, with a loan term of 30 days. When Fast Express failed to repay the 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 loan repayment has been planned.

As a result, Urgame claims HK $ 97.9 million from Merit Horizon and Fu for breach of contract and liability, the amount to include “principal, accrued interest and damages incurred as of December 31, 2021”.

“The company has also filed a report with the police to investigate any wrongdoing that may have been committed in connection with the Merit Horizon loan,” he said. “To the Company’s knowledge, the relevant police force is under investigation in this regard. “

Last year, Fu and another former director unsuccessfully called an Urgame shareholders meeting to vote on the removal of seven existing directors regarding the sale of the WPT and the use of the funds.

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