China Kangda Food receives winding-up petition, said to owe HK$39 million

CHINESE food processing group China Kangda Food Company on Monday (Oct 23) received a winding-up petition filed by Hong Kong High Quality with the High Court of Hong Kong, over an alleged failure to repay loans of HK$39 million (S$6.8 million).

The controlling shareholder and director of Hong Kong High Quality is a relative of Gao Yanxu – China Kangda’s executive director, the company said in a bourse announcement.

No winding-up order has been granted by the High Court of Hong Kong, it added.

China Kangda said that it was in the process of seeking legal advice, and had been in active negotiations with the petitioner for an amicable settlement of the winding-up petition.

The first hearing for the case is scheduled for Dec 27 at 9.30 am, at the High Court of Hong Kong.

“The company wishes to remind shareholders and potential investors... that the shares of the company may be restricted as the deposits of the shares into the central clearing and settlement system may be suspended due to the petition,” it said.

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Shares in China Kangda ended Monday flat at S$0.029 before the announcement.