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China Environment ceases China units' operations; no intention to pay off civil suit liabilities
MAINBOARD-listed China Environment has ceased business operations in its China subsidiaries, the group said on Friday in response to queries by the Singapore Exchange.
In its filing with the bourse, China Environment said that it is awaiting court auctions related to the properties secured under the Bank of China Longyan loan and Zhongxin Bank loan to be completed, before finalising any further decision for its subsidiaries in China.
As at April 2018, various enforcement orders have been taken out against these subsidaries including eight enforcement orders totalling 151 million yuan (S$32 million) against its subsidiary Fujian Dongyuan Environmental Protection Co; two orders amounting to 84 million yuan against Anhui Dongyuan Environmental Protection Co; and one 23 million yuan order against Xiamen Gongyuan Environmental Protection Technology Co.
As these subsidiaries are limited liability entities, the company does not plan to pay off the civil suit liabilities since its long-term plan is to either liquidate or dispose these subsidiaries, China Environment said.
In addition, the company and its auditors are in the midst of finalising the group's financial statements for FY13, FY14 and FY15, expected to be complete by end April 2018.
Commencement of the audit from RT LLP has also started, with group accounts for FY16 and FY17 expected to be completed by the end of May this year, China Environment said.
Barring any unforeseen circumstance, the investment company, which designs and produces air pollution control and treatment systems in China, expects to convene its annual general meeting for fiscal years 2013 through 2017, by the end of June 2018.
In December last year, BT reported that a former executive chairman of China Environment and his family have been prohibited by the Singapore High Court from dealing with company assets worth up to US$7 million.
The company said that it was granted on Dec 4 an application for the Worldwide Mareva Injunction Order against Huang Min, his wife and his two daughters.
In September 2016, China Environment also said that there were discrepancies in the findings of a Chinese legal firm appointed by the company to investigate the existence of trade receivables due from Anhui Shengyun Mechanical Co and Nanning Youji Technology Co.
Shares in China Environment have been suspended and last traded at 3.7 Singapore cents apiece on June 23, 2016.