(Alliance News) - Take Off Spa announced Tuesday that its subsidiary Over Spa has reached a settlement agreement to resolve its outstanding dispute with Hangzhou Refine Import & Export Co. Ltd.

"In order to ensure compliance with the quality standards of the group's brands, the activity carried out by the suppliers is subject to stringent control activities that may result not only in the examination of product samples before the start of serial production but also in inspections and checks carried out directly by representatives of Take Off and Over at the production plants of their partners. Specifically, during the 2020 financial year Over had found certain criticalities related to the quality of the fabrics used for the production of the fall/winter 2020 collection, proceeding to withdraw the goods from the market, interrupting any kind of business relationship, not proceeding with the payment of the balance for the goods received, and taking legal action," as the company explained in a note.

Take Off disclosed that on Nov. 27 it signed an agreement with its counterpart company Hangzhou Refine Import & Export for a 75 percent discount of the debt currently on its balance sheet.

The said agreement provides for a payment by Over of USD800,000.00 against current debt of USD3.2 million. The payment will be made in installments of USD100,000.00 each starting November 27 and ending June 30, 2024.

The agreement also stipulates that with each individual payment from Over, the counterparty will send a credit note of USD300,000.00, with the exception of the credit note corresponding to the last payment, which will be in the amount of USD267,325.54, up to the full amount referred to in the agreement, which is USD2.4 million.

In the event that even one of the agreed payments is not made in full within the agreed terms, Hangzhou Refine Import & Export 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 trades in the red by 1.3 percent at EUR0.76 per share.

By Claudia Cavaliere, Alliance News reporter

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