SINGAPORE: Broadcaster ESPN Star Sports is suing
landbanking firm Profitable Plots, which is under police
investigation following complaints of cheating, for failing to pay
close to US$4 million (S$4.9 million).
While a default judgment was issued in December
against Profitable Plots, after it did not appear in court, the
money has not been paid to date.
ESPN is also claiming damages for misrepresentation,
conspiracy and fraudulent trading in the lawsuit against Profitable
Plots' directors John Andrew Nordmann and Mr Timothy Nicholas
Goldring, which they have denied in their defence filed in
April.
Court documents state that the two companies had entered into an
agreement in November 2007, which entitles Profitable Plots to air
its advertisements and sponsor some of ESPN's television programmes
for three years.
ESPN's lawyer See Chern Yang of Premier Law said the landbanking
firm has defaulted on payment since April 2009, and after several
meetings between December 2009 and June last year, the directors
only kept giving verbal assurances.
In its court papers, the broadcaster alleged that Profitable Plots
and its related companies had suffered losses of S$25.8 million in
2009 and that the two directors had not only failed to ensure
sufficient finances to fulfil agreements, they gave a false
impression the business was profitable, with the intention to
deceive creditors.
In response, Profitable Plots' lawyer Roy Yeo of Sterling Law
Corporation said his clients did not proffer any oral assurances to
make payment but were given a time extension by ESPN after they had
explained the firm's difficulties.
In their court papers, the two directors claimed that ESPN was, on
its own accord, "happy to continue" with the agreement, as it would
have otherwise lost a considerable amount of content from their
channel without Profitable Plots' advertising.
The men claimed that ESPN withheld suspending the agreement due to
its "own commercial reasons".
ESPN has since filed a reply refuting that there was any agreement
to allow delay of payment and said the defendants had admitted the
debt by giving two post-dated cheques that were not encashable
eventually.
The broadcaster added that it terminated the agreement after the
defendants did not respond to several warnings and notices for
payment.
Meanwhile, investigations by the Commercial Affairs Department into
Profitable Plots are ongoing after 229 complaints were made by
investors who claimed they were cheated of S$23.5 million.
No criminal charges have been pressed on the company's directors
and the matter is due in court on July 8.
- TODAY