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Legal Showdown: VM Investments Sues iCreate Shareholders for $504.58 Million in Unpaid Loans

VM Investments sues top iCreate Group shareholders, including Kevin Frith, for $504.58 million in unpaid loans. Seizure of shares could make VM the largest shareholder and trigger a change of control under JSE rules. Defendants express hope for an amicable resolution as financial stability comes under scrutiny.

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Legal Showdown: VM Investments Sues iCreate Shareholders for $504.58 Million in Unpaid Loans

Legal Showdown: VM Investments Sues iCreate Shareholders for $504.58 Million in Unpaid Loans

In a high-stakes legal showdown, VM Investments, a subsidiary of Victoria Mutual Building Society, has filed three lawsuits against top shareholders of iCreate Group to reclaim approximately $504.58 million in unpaid loans. The defendants, including businessman Kevin Frith, AHL (SPV), Kintyre Holdings, and eMedia Interactive Group, are accused of breaching loan agreements by not repaying the debts.

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A Tale of Unpaid Loans and High Stakes

The loans in question were secured by shares in iCreate as collateral. VM Investments claims they were met with silence after sending a letter in October regarding the unserviced loan agreements. If VM Investments were to seize the pledged iCreate shares, they would become the largest shareholder, potentially triggering a change of control under Jamaica Stock Exchange (JSE) rules.

The lawsuits detail various loans and interest amounts, with Kintyre Holdings owing $181.47 million, eMedia owing $117.50 million, and a loan involving AHL (SPV), Frith, and Kintyre totaling $180.06 million.

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Surprise and Hope for Resolution

Tyrone Wilson, chairman of Kintyre Holdings and director of eMedia, expressed surprise about the lawsuit, which he learned about through social media. He hopes for an amicable resolution.

Frith's attorney, Denise Kitson, is handling the matter on his behalf. VM Investments is represented by Symone Mayhew KC of Mayhew Law, while the defendants are represented by Georgia Gibson Henlin KC.

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Financial Stability Under Scrutiny

iCreate, led by Wilson, had planned to purchase Visual Vibe and sought funding through convertible debt. The company eventually acquired Visual Vibe for $588.61 million, resulting in significant goodwill on its balance sheet. iCreate's shares have been suspended from trading on the JSE due to rule breaches, and the company's financial situation includes $700 million in total assets and $375 million in total liabilities.

The impact of VM Investments' lawsuit on iCreate's intention to sue Sagicor Investments for a previous receivership action remains unclear, raising concerns about the financial stability of other listed companies with majority owners who have pledged shares as loan collateral.

This legal battle between Wilson's companies and VM Investments adds another layer of complexity to the financial landscape, with the outcome potentially reshaping the future of these businesses and the broader market.

As the dust settles on this initial phase of the legal proceedings, one thing is clear: the financial world will be watching closely as this drama unfolds, with far-reaching implications for all involved.

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