Ignition Capital Partners has found itself in the middle of a complex legal dispute over the distribution of Budweiser beer in Vietnam.

Ignition Capital, the Seattle private equity arm of Ignition Partners, signed a letter of intent in February 2010 to invest up to $25 million in Gannon Hong Kong, an entity which had plans to construct a Budweiser brewery near Ho Chi Minh City, according to The Financial Times.

But Ignition Capital reportedly terminated that deal in April and invested in another company by the name of Gannon Brewery Joint Stock Company, which the Financial Times describes as a Vietnamese entity holding the brewing license via a Hong Kong corporation affiliated with Ignition.

A complaint was filed in federal court in May against Ignition Capital, Walter Blocker, Sandalwood Investments Limited and others by an entity known as Gannon International, a St. Louis company led by Vietnam war veteran William Franke. The complaint notes:

Blocker has breached his fiduciary duties to Gannon International; has stolen and misused hundreds of thousands of dollars belonging to Gannon International and its subsidiaries; has falsely claimed ownership of Gannon International subsidiary companies; has tortiously interfered with the contracts and business relationships of Gannon International and its subsidiary companies; has refused to allow Gannon International access to the books and records of companies owned by Gannon International; and is now attempting to take Gannon International’s investment in Gannon Brewery Joint Stock Company. Ignition Capital and Sandalwood, either knowingly or unwittingly, have become partners in Blocker’s tortious and illegal actions.

Based on the initial complaint, allegations were made that Blocker was in essence trying to fraudulently wrestle control of the company with the help of Ignition and others. Blocker denied those allegations in the Financial Times' story, saying he did not steal any money or breach any fiduciary duties.

In a motion to dismiss the suit, attorneys for Ignition and Sandalwood argued that Gannon International's claims should not be handled in federal court in Missouri. They wrote:

Even if the Court had personal jurisdiction over Ignition and Sandalwood and had subject matter jurisdiction over this lawsuit, all of plaintiffs’ claims against Ignition and Sandalwood must nevertheless be dismissed because they arise in connection with the Subscription Agreement and are thus subject to arbitration in Singapore.

Meanwhile, The Financial Times reports that AB InBev's Budweiser continues to be distributed in Vietnam through an entity known as Redwood Holdings which incorporated in Delaware in April 2010.

Here's a look at the initial complaint: