China Jinjiang's majority lenders do not require mandatory prepayment of outstanding loans and amounts under US$200m loan facility

China Jinjiang Environment announced late on Tuesday night that majority lenders do not require the mandatory prepayment of all outstanding loans and amounts as a result of an earlier change in control of the company, with regard to its US$200 million loan facility with Standard Chartered Bank (Hong Kong).

Earlier in June, it was announced that the controlling shareholders of China Jinjiang Environment Holding Company are selling their interests in China Green Energy, which owns a 29.79 per cent stake in China Jinjiang, for 1.6 billion yuan (S$310 million).

Following the transaction, Dou Zhenggang and Wei Xuefeng will be considered the second-largest controlling shareholders of the company, with their collective shareholding going from 55.61 per cent to 25.82 per cent.

As the collective shareholding of Mr Dou, Ms Wei and immediate family members have dropped below 45 per cent, they have also disclosed the transaction will result in a change of control of the company.

When that occurred, China Jinjiang had to notify the agent Standard Chartered Bank (Hong Kong). Should the majority lenders have required it, the agent would have to give notice on declaring all outstanding loans and amounts with accrued interest immediately due and payable.