After years of arbitration, Weili Su, the founder of Sky Holdings and Flash Bright Power, has been ordered to pay nearly $14 million to three former Sky Holdings executives: Alfred Shengkang Fei, Richard Yuqiang Lu and Ranran Xu.
The initial suit arose after allegations that Su stripped Sky Holdings’ assets in secret and transferred them to a holding company, which was later taken public on the NASDAQ.
The confirmation of a a default judgment against Su is an interesting one, as it came almost a year after the original judgement by the Hong Kong International Arbitration Centre. What differentiates a default judgement is that a default judgement is ordered after one party has failed to perform a court-ordered action. In this instance, Fei, Lu and Xu enlisted the legal assistance of Kobre & Kim, a firm specializing in cross-border debt enforcement, as the parties were not confident that they would be awarded their multimillion dollar arbitration.
The decision was also a relatively easy one, as Su never responded to the petition that was delivered to another company of his, Flash Bright Power. Su never appeared in court for the action and the time for him to do so had expired.
And while the dollar amount is high, the decision itself is more standard. This type of action has become almost necessary in high-monetary award cases, as millionaires and billionaires would really prefer not to have to give away millions of their own, even if they are required by law to do so.
Also becoming standard is Kobre & Kim’s involvement in these arbitration petitions, as the firm recently enforced a multimillion-dollar international arbitration award against Chinese billionaire Jia Yueting. Furthermore, John Han — the attorney that represented Fei, Lu and Xu — is based out of Hong Kong.
Broken down, Shengkang Fei will receive $8 million, Richard Yuqiang Lu will get $4.8 million and Ranran Xu will get $400,000. The group as a whole will receive $490,000, with additional interest to be added to the amount, as outlined by U.S. law.
By Tim Sylvia