(Alliance News) - Take Off Spa announced on Tuesday that it had reached a settlement agreement to resolve its existing dispute with Hangzhou Refine Import & Export Co. Ltd.

Specifically, during fiscal year 2020 Over Spa had found certain critical issues related to the quality of the fabrics used for the realization of the fall/winter 2020 collection, proceeding to withdraw the goods from the market, interrupting all types of business relations, not proceeding to pay the balance for the goods received and taking legal action.

The company then announces that on November 27, it signed an agreement with Hangzhou for a 75 percent discount of the debt currently on its balance sheet.

This agreement provides for a payment by Over of USD800,000 against a current debt of USD3.2 million. The payment will be made in installments of USD100,000 each starting November 27 and ending June 30, 2024.

The agreement also stipulates, that with each individual payment by Over, the counterparty will send a credit note of USD300,000, except for the credit note corresponding to the last payment which will be in the amount of USD267,325.54 up to the full amount of EUR2.4 million agreed upon.

In the event that even one of the agreed payments is not made in full within the agreed terms, Hangzhou shall have the right to consider the subject agreement terminated as of right and require Over to immediately pay the initial amount fully due.

Take Off's stock is up 1.4 percent at EUR0.78 per share.

By Chiara Bruschi, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.