China’s Anbang Insurance Group may decide not to appeal last month’s court decision favoring Mirae Asset Daewoo over a failed hotels deal, as it has little evidence to overturn the ruling.
A Delaware court sided with a consortium led by Mirae Asset Daewoo, ordering the Chinese company to return a deposit of $572 million plus accrued interest of $23.4 million to the South Korean investment bank. It also ruled that Mirae was entitled to court costs, including its attorneys’ fees and expenses.
The decision came almost eight months after Mirae filed a counterclaim in response to a lawsuit filed by Anbang that argued Mirae must fulfill its promised payment for 15 U.S. hotels. The investment bank agreed in 2018 to buy the hotels from Anbang for $5.8 billion.
Anbang has until Monday (March 8), U.S. Eastern Time, to file an appeal to the court.
“Anbang would not want to accept defeat in the court battle it initiated,” a legal source said. “I expect it to file an appeal to turn the situation around in a new trial.”
However, many others are skeptical that Anbang will continue its legal fight over the collapsed deal, with the ruling by the court considered very conclusive.
Delaying the compensation would also result in a huge financial burden from accrued interest payments if Anbang ultimately loses the appeal. According to Delaware laws, accrued interest is compounded quarterly, which is equivalent to 5.25% annually.
“Anbang has few reasons to convince the appeal court to reverse the ruling because the company obviously is fully responsible for the collapse of the deal according to the court document,” another legal source said. (Reporting by Byung-yoon Kim)