Read the latest NR this morning. Wow but they got it out early!! At first reading, I have some anxiety regarding what this all means - maybe not so good!!!
Link: http://biz.yahoo.com/e/071022/witm.ob8-k.html
Some excerpts: seems that Wits is disagreeing with SSC Mandarin.
1) Item 1.02 Termination of a Material Definitive Agreement.
.........
On October 15, 2007, the Registrant received a notice of termination of the CGMR Agreements from SSC Mandarin. SSC Mandarin alleges that the parties agreed to certain amended terms to the CGMR Agreements, and that Registrant has breached those amended terms. Registrant denies that such amended terms were ever agreed upon, and asserts that the CGMR Agreements have been executed and delivered by the respective parties and that consideration for the transfer of equity interest has been paid by Registrant to SSC Mandarin. Accordingly, Registrant believes that the CGMR Agreements have been consummated and are not terminable.
Item 8.01 Other Events.
On October 15, 2007, Easyknit Enterprises Holdings Limited and Race Merger, Inc. (collectively referred to as "Easyknit"), filed an Answer and Counterclaim in Registrant's declaratory judgment action whereby it seeks a declaration by the Court that it is entitled to terminate the merger agreement based on its dissatisfaction with due diligence and a material adverse change in the financial condition of Easyknit and unspecified damages for breach of contract to potentially include in excess of $2 million for lost out of pocket expenses and in excess of $300 million for lost profits. Easyknit's counterclaims seek a declaratory judgment that (1) Easyknit is entitled to a $30 million termination fee in the event that Registrant terminates the merger agreement and (2) that Easyknit is entitled to a $30 million termination fee in the event that Easyknit terminates the merger agreement based on Registrant's alleged breach of the terms of the merger agreement. Registrant does not believe Easyknit's counterclaims are meritorious, and intends to vigorously defend against these counterclaims.
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