AFH Holding & Advisory Files Lawsuit Against Emerald Dairy's Chairman & CEO
AFH Holding & Advisory, a single member family office and advisory firm serving U.S. and international clients, today said it has filed a lawsuit in the Superior Court, County of Los Angeles, State of California against Emerald Dairy Inc.'s chairman, chief executive officer and president, Yang Yong Shan.
The complaint claims that Yang Yong Shan defaulted on an obligation to deliver shares of Emerald Dairy (OTCPK: EMDY) common stock to AFH under a pledge agreement in connection with a $1.75 million loan to Emerald Dairy, Inc.
In October 2011, Emerald Dairy defaulted on the loan, and AFH, as assignee, received 5.8 million shares of Emerald Dairy common stock. The pledge agreement provides for an additional 4.1 million shares to be remitted to AFH in the event Emerald Dairyys stock price dropped below a certain floor, which has occurred. The 5.8 million shares in addition to the anticipated receipt of 4.1 million shares represents approximately 33% of the common stock outstanding of Emerald Dairy Inc.
Emerald Dairy is a producer and distributor of infant and children's formula products, milk powder and soybean products in the People's Republic of China, operating under its wholly-owned subsidiaries Heilongjiang Xing An Ling Dairy, Heilongjiang Beian Nongken Changxing Lvbao Dairy, and Hailun Xinganling Dairy.
AFH operates an established lending practice, offering secured asset collateralized loans, including stock collateralized loans. The firm is a licensed lender in the state of California.