08/01/2014

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Cellchem continues pursuit of USD 7.4 million award against Shekoy

Shekoy is solely responsible for USD 5.0 million of the judgment. Shekoy and co-defendants Dale Lyman, Helen Lyman, and Tritec International, Inc. are jointly responsible for USD 1.4 million of the judgment, with defendants Dale Lyman, Helen Lyman and Tritec responsible for the remaining USD 1.0 million. The USD 7.4 million final judgment was awarded to Cellchem on 23 May 2014 after a weeklong jury trial. Shekoy Chemicals U.S. is a subsidiary of Jiangsu Yoke, a USD 500 million capitalization company publicly listed on the Shanghai Stock exchange and the largest flame retardant producer in the world. If the defendants post the bond, the money will be held in escrow by Cobb County until all appeals have been exhausted; if not, Cellchem can begin collection efforts. These collection efforts could include garnishing Shekoy customers so that any Shekoy receivables are sent to Cellchem in satisfaction of the judgment. Cellchem can also take title to all Shekoy inventory and other assets including bank accounts while the appeal process continues. Denny Spicher, Vice-President of Cellchem commented, "We have tried very hard to keep customers out of the process. Shekoy has repeatedly attempted to circumvent the U.S. legal system at our expense.” Steven Gabelman, Vice-President of Cellchem added, "The court has obviously had enough of the lies, deception and delay tactics of the defendants. If, as Shekoy has told customers, they can conduct business as usual and a long legal process remains, they should put their money where their mouth is.” Jonathan Crumly, lead lawyer from the firm Maner, Crumly, Chambliss LLC added, "If Shekoy does not put up the bond and tries to get customers to circumvent the system, those customers could be liable for the amounts diverted and other damages as a fraudulent conveyance. Customers should be very concerned if Shekoy tries to change any payment instructions which evidences an attempt by Shekoy to hide assets, particularly if these instructions direct payables to be sent to any entity other than Shekoy or to any off-shore accounts.”  

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