CON AERO TECH(00232.HK): Subsidiary Reaches Settlement with US DoJ, to Pay Approximately USD11.77 Million
NewTimeSpace News: Continental Aerospace Technologies Holdings Limited (00232.HK) released an inside information announcement on 4 August 2026. Continental Aerospace Technologies, Inc., the Group’s indirect wholly-owned subsidiary, entered into a settlement agreement with the US Department of Justice on 31 July 2026 concerning the Paycheck Protection Program (PPP) loan obtained and forgiven under the CARES Act during the COVID-19 pandemic.
According to the announcement, CAT US applied for and secured a PPP loan with a principal amount of approximately USD7.43 million in 2020 amid the pandemic to cover staff salaries, utility expenses and rental costs. The loan was fully forgiven in August 2021. In November 2023, CAT US received an initial inquiry from the Department of Justice requesting documents and information relevant to the loan eligibility and forgiveness, and the company cooperated by submitting relevant materials.
Following good-faith negotiations with the Department of Justice, CAT US resolved the matter via settlement. Under the settlement terms, the company shall pay USD11,772,680.14 together with interest calculated at an annual rate of 4% from 23 June 2026 until full payment. The settlement also releases CAT US from any future civil liabilities or claims arising under the False Claims Act in connection with the PPP loan.
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