Scully Royalty: Jumps after update on litigation

Scully Royalty

05/10/2020 16:28

** Merchant banking company's shares  SRL.N  up 14.4% at
$4.3 
    ** Provides update in a legal action related to an alleged
guarantee of the co's former parent for about 43 mln euros
 urn:newsml:reuters.com:*:nPn5LKd31a
    ** Co says it disputes the validity of the alleged
guarantee; does not believe that the claim linking the guarantee
to the company has merit
    ** Says an initially ex-parte freeze order granted to the
plaintiff, Raiffeisen International Bank AG, restricts Scully
from disposing certain shares and is only applicable in the
Cayman Islands 
    ** Says the order has no implications on co's ongoing daily
businesses and does not expect litigation to impact financial
results
    ** Co does not expect the litigation to be resolved in the
short-term 
    ** Stock down about 64% YTD 

 (Reporting by Shivani Kumaresan in Bengaluru)
 ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;))