The directors of Bermuda-based Brilliance China Automotive China minibus manufacturers have issued a statement updating and clarifying the legal action in Bermuda against their company by Broadsino Finance Limited.

On February 18, Broadsino, a company owned by Brilliance former chairman Yang Rong, had launched an appeal against the decision of the Bermuda Court to discharge an earlier injunction obtained by Broadsino.

That injunction had blocked a sale and registration of 39.45 percent stake in the Company's shares by a Hong Kong-based foundation (the "Foundation") to Huachen Management, a state owned entity.

Broadsino would like to see the injunction reinstated, but the Bermuda judge who discharged the injunction refused to grant leave to bring an appeal.

Broadsino has no automatic right of appeal and their only route now is to seek leave from Bermuda's Court of Appeal to bring an appeal.

At the moment, the outcome of the applications by Broadsino (if any) to the Court of Appeal for leave to bring an appeal is unknown.

The Bermuda Court has so far made no determination of the merits of the case and the legal proceedings are proceeding in accordance with the usual procedures for conducting civil proceedings in the Supreme Court of Bermuda.

However the Company reiterated Broadsino's claims that the Foundation is not the beneficial owner of the shares sold are groundless and without legal merits.

Up until now, the other defendants named in the original writ, namely Huachen, the Foundation and certain Directors of the Company have not been formally served with a writ in Hong Kong.