Hidili subsidiaries’ lender files suit; board discussing restructuring

By Caroline Salls

Pittsburgh, June 5 – Hidili Industry International Development Ltd. wholly owned subsidiaries Sichuan Haohang Trading Co. Ltd. and Sichuan Hidili Industry Co., Ltd. received a notice of court action issued by the Higher People’s Court of Sichuan Province of the People’s Republic of China related to a civil complaint filed by the Chengdu Branch of Shanghai Pudong Development Bank.

According to a news release, the complaint was filed against Sichuan Haohang, Sichuan Hidili and Hidili Industry’s wholly owned subsidiaries Liupanshui Hidili Industry Co., Ltd. and Hidili Industry (China) Group Ltd. in connection with a loan agreement dispute case.

Specifically, the company said the plaintiff filed claims against Sichuan Haohang and Sichuan Hidili for the outstanding principal amount as of Aug. 25, 2016 and the default interest payment calculated on April 18 of RMB 134 million each under an agreement of establishing a bank promissory note entered into between the plaintiff, Sichuan Haohang and Sichuan Hidili.

Liupanshui Hidili pledged some assets and mining rights, and Hidili China acted as guarantor in connection with the promissory note agreement.

Hidili Industry said its board of directors is discussing and communicating with the plaintiff regarding a debt restructuring scheme. Other onshore lending banks are also implementing the restructuring scheme and will not be affected by this litigation.

Based in Panzhihua, China, Hidili is a coal and coke company.

© 2015 Prospect News.
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