China Environment subsidiary receives letter of demand from bank

CHINA Environment's wholly owned subsidiary, Fujian Dongyuan Environmental Protection Co, has received a letter of demand from China Construction Bank claiming overdue interest for a working capital loan.

In the letter dated Sept 21, the bank said that it is claiming the repayment of 85,801 yuan (S$17,517) in overdue interest for a working capital loan of 23 million yuan.

"Notice is given in the letter of demand that, unless the overdue interest and loan principal are paid within three days of notice, the lender shall take such further steps as it deems necessary under the law to protect its rights under the loan agreement," China Environment said in a release to the Singapore Exchange.

The company is currently reviewing the letter of demand with its legal advisers.