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Two subsidiaries of China Environment lose civil suits in China
THE Chinese court has awarded a civil suit win to Wuyi Jiufeng Anzhuang Engineering, which sued Fujian Dongyuan Environmental Protection and Anhui Dongyuan Environmental Protection, two wholly-owned subsidiaries of China Environment.
Announcing this on Wednesday, the board of directors of China Environment said Fujian Dongyuan will be paying the contract sum of 24,432 yuan (S$4,953) and 166,576 yuan (S$33,769) in one and three monthly instalments respectively, with the first instalments starting on June 30.
It will also be footing the court costs of 220 yuan and 1,899 yuan.
Anhui Dongyuan will pay the sums of 817,630 yuan and 637,380 yuan in five and four monthly instalments respectively, commencing from June 1 and May 20 respectively. It will also foot court costs of 5,987 yuan and 5,087 yuan.
In another civil suit, judgement has been awarded to the plaintiff, the Bank of China Longyan, which sued Fujian Dongyuan, announced on Oct 19 last year.
Fujian Dongyuan is liable for the 55 million yuan loan and interest owing of 805,898 yuan and will need to pay within 10 days of the effective date of judgement, together with interest at the rate of 9 per cent per annum from Sept 25, 2016.
Should Fujian Dongyuan not fulfil its obligations, the Bank of China has the right to sell off the land use rights and property assets of Anhui Dongyuan pledged for the loan.
The carrying net book value of pledged asset that could be foreclosed is 295 million yuan, the remaining balance after deducting the bank loan, interest in arrears and other expenses from the sale of asset could not be determined in view that this is a foreclosure situation.
The bank's legal costs of 80,000 yuan shall be paid by Fujian Dongyuan, and court costs of 322,697 yuan paid by Fujian Dongyuan, Anhui Dongyuan and the personal guarantors for this loan.