China Environment authorises subsidiary's creditor to run unit, collect rental income

CHINA Environment has given authorisation to a creditor of its wholly owned unit Anhui Dongyuan Environmental Protection Co to take over management of Anhui and to collect rental income at its property.

In a filing with the Singapore Exchange on Monday, China Environment said that it has given Lin Qun Bin - who allegedly is owed a working capital loan of 6.47 million yuan (about S$1.28 million) - an authorisation letter to act on behalf of China Environment's legal representative in removing Anhui's current management and taking over management of Anhui. Mr Lin is tasked with ascertaining rental income for Anhui's property in 2018 and collecting that rental income.

China Environment went on to add that Mr Lin has ascertained that the rental agreements amount to 265,000 yuan per month of which 115,000 yuan has to be paid in monthly operating expenditure. The two parties have agreed that 50,000 yuan per month will be paid to China Environment and the remaining 100,000 yuan to Mr Lin.

In an earlier announcement in June, China Environment flagged that it suspected rental income misappropriation by Anhui's existing management.