chinadotcom corporation (Nasdaq: CHINA), has filed legal proceedings in Taiwan against its former partner CMC Magnetics Corporation (CMC) and its subsidiary Taiwan Dakang (TD).
HONG KONG, 17 July 2000 (Asia Pulse) – The pan-Asian integrated Internet company is seeking repayment of US$2 million in loans after terminating an investment contract signed in 1999 among chinadotcom, CMC and TD.
Under that investment contract, CMC agreed among other things not to compete with the business of the chinadotcom-owned http://www.taiwan.com portal.
After many fail ed attempts at resolving differences with CMC and TD, and because of their continuing nonperformance and breach of their contractual obligations, chinadotcom found it necessary to protect shareholder value by terminating the investment contract and to seek repayment of its investment.
CMC and its subsidiary TD have since been relieved of their management responsibilities at the Taiwan.com portal, but continue to operate competing websites in Taiwan.
Legal proceedings were filed against CMC and TD for repayment of US$2 million in loans. chinadotcom is also considering other remedies against CMC for its breach and nonperformance of the investment contract.
It is chinadotcom's view that the steps taken today were necessary so as to provide an environment for continued sound management of a key part of the chinadotcom portal network. chinadotcom is keen to ensure that its portal network provides the best local content and services tailored to local users.
On July 13, 2000, chinadotcom corporation relaunched its portal Taiwan.com with a newly designed look and feel to be more in keeping with other members of the chinadotcom network of portals.
As part of this new look and feel, all content, community and e-commerce services will be deepened for a richer, more compelling user experience at the Taiwan.com portal. chinadotcom currently has other partners in Taiwan and are committed to developing partnerships that create synergies for the chinadotcom portal network.
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