JIU RONG HOLD (02358.HK): court orders subsidiary to freeze and deduct bank deposits of about RMB50.12 million in Bocom loan dispute

NewTimeSpace News: According to the HKEX on October 29, Jiu Rong Holdings Limited ("Jiu Rong Holdings", 02358.HK) published an inside information announcement updating the progress of litigation brought by Bank of Communications Co., Ltd. Hangzhou Gongshu Sub-branch (plaintiff) against its subsidiary Hangzhou Lvyun Real Estate Co., Ltd. (defendant) over a financial loan contract dispute, under case number (2026) Zhe 0102 Min Chu No. 6794.

According to the announcement, the parties reached a mediation agreement on May 13 through the Hangzhou Shangcheng District People's Court, extending the repayment deadline to August 31, involving principal of about RMB49 million plus accrued interest and penalty interest. As the defendant failed to repay on time, the plaintiff applied for enforcement. Under the enforcement notice and ruling received on October 27, the defendant should pay about RMB49.86 million plus interest and litigation and enforcement fees of about RMB260,000; the court froze and deducted about RMB50.12 million of the defendant's bank deposits, and will seal up, seize or sell its assets if the deposits are insufficient.

The company said the enforcement and freezing/deduction will freeze and deduct some of the Group's bank deposits, adversely affecting its cash flow, working capital and financial position. The loan was originally secured by 31 properties in Liuhe Jinzuo, Xihu District, Hangzhou (about 8,228 sqm), which the court may seal up, auction or sell if the deposits are insufficient. Management is actively communicating with the plaintiff to explore further settlement or installment repayment.