Bruce Willis sues Green Rubber parent firm

ERJ staff report (TB)

Los Angeles - Hollywood actor Bruce Willis has sued the parent company of recycling firm Green Rubber Inc., claiming it is withholding $900,000 (Euro 700 000) of the $2 million investment he made in the company.

Willis invested in the recycled rubber devulcanization company in 2007, but in March 2008 decided to exercise his option to recover the full amount of his investment, according to news reports. The company paid back $1.1 million, but in the complaint he filed with US District Court for the Central District of California, Mr. Willis accused the Petra Group, the Kuala Lumpur-based parent of Green Rubber, of making “different specious excuses” for keeping the rest of the money.

Petra said in a statement that Willis in 2007 contacted Datuk Vinod Sekhar, the chief executive of the company, asking for the chance to invest in the company. Willis made the investment following the investment in the company of friend and fellow actor Mel Gibson. Sekhar had agreed to buy back Mr. Willis' shares at any point in the future, according to the actor.

At the time, Green Rubber was planning an initial public offering (IPO) on the AIM market in London, but those plans were put on hold because the market took a severe downturn because of the global credit crunch, Petra said.

Following the decision not to seek an IPO, Mr. Willis asked to sell his shares back to Sekhar.

In its statement, the Petra Group said it already has paid back $1.1 million and Mr. Willis knows the company will pay him the balance of his money within the next few weeks.

“The company is therefore very surprised by Mr. Willis' actions,” Petra said, “and refutes in the strongest possible terms any allegations of impropriety.”

Petra said that Gibson remains a significant investor in Green Rubber and quoted him as saying he is “delighted with the company's progress.”

From Tire Business (A Crain publication)