Chagala GroupLtd.'s planned capital increase was suspended following ashareholder's court appeal.
The Eastern Caribbean Supreme Court in the Commercial Divisionof the High Court of Justice of the British Virgin Islands suspended theplacing and open offer until Oct. 27.
TIPP Investments PCC filed a claim against the company andits board members alleging that the planned capital increase of approximatelyUS$5.8 million would prejudice its rights as a shareholder, among otherreasons.
A hearing for the shareholder's claim is also scheduled forOct. 27.
Chagala plans to appeal the suspension, which it believeswas granted without reasonable basis, on the grounds that it was not granted anopportunity to present its full submissions to the court. A hearing onChagala's appeal is expected on or before Sept. 30.