Dasin Retail Trust’s indirect stakeholder says winding-up petition is not a default event
Michelle Zhu
SINO-OCEAN Capital Holding’s affiliate New Harvest said a winding-up petition filed against Sino-Ocean Capital does not represent an event of default – contrary to the view of Dasin Retail Trust’s substantial shareholder, Zhang Zhencheng.
Sino-Ocean Capital owns a majority 70 per cent interest in Dasin Retail Trust’s trustee-manager through New Harvest. The company also holds about 12 per cent of the trust’s units through another subsidiary.
Zhang is an independent director of Dasin Retail Trust’s trustee-manager as well as a substantial shareholder of the trust.
On Monday (Jun 5), the trustee-manager said New Harvest disputed Zhang’s notice of termination of a shareholders’ agreement between Zhang, New Harvest, and Shun Fung Investment.
While Zhang’s notice of termination came on the basis that the winding-up petition was a default event, New Harvest claimed this was an “incorrect understanding of the termination provisions” under the agreement.
It also highlighted the absence of an application for the appointment of an administrator.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The shareholders’ agreement therefore “remains valid and in full force and effect”, New Harvest indicated.
New Harvest has also notified Zhang to withdraw his termination notice as it is deemed “invalid” – adding that any further actions based on Zhang’s attempt to terminate the shareholders’ agreement will be “similarly invalid and of no legal effect”.
Dasin Retail Trust’s trustee-manager also said the hearing of the winding-up petition against Sino Ocean Capital in the Hong Kong court, which was slated to take place this week on Jun 7, has been postponed to Aug 17.
SEE ALSO
Units of the trust were trading S$0.006 or 4.5 per cent lower at S$0.13 as at 1.38 pm on Monday, after the latest update.
Copyright SPH Media. All rights reserved.
