Hongyang Service (01971) issued an announcement. On January 23, 2024, the company was awarded the controlling shareholder Hongyang Group...
Zhitong Finance App News, Hongyang Services (01971) issued an announcement. On January 23, 2024, the company was notified by its controlling shareholder Hongyang Group Co., Ltd., that Serica Agency Limited (petitioner) filed a winding-up petition with the Hong Kong Special Administrative Region High Court dated January 19, 2024, requesting the High Court to issue an order to liquidate Hongyang Group Co., Ltd. in accordance with Chapter 32 of the Hong Kong Laws (Liquidation and Miscellaneous Provisions) Regulations, on the grounds that Hongyang Group Co., Ltd. was unable to pay back to the petitioner US$288.6 million is the payment amount (including interest until August 2022) under the US$275 million 9.875% secured senior notes (senior notes) issued by Hongsheng Limited due in 2022. Hongsheng Co., Ltd. is a direct wholly-owned subsidiary of Hongyang Group Co., Ltd. Hongyang Group Co., Ltd. is the guarantor of the senior notes.
As of the date of this announcement, the relevant petition has not yet been heard, and the High Court has not issued a winding-up order against Hongyang Group Co., Ltd.
As of the date of this announcement, Hongyang Group Co., Ltd. has been discussing with its creditors to reach a practical and comprehensive solution to its foreign debts. Hongyang Group Co., Ltd. expressed regret that it was unable to agree with several creditors on commercial terms relating to a comprehensive settlement, which led to the petitioner's unilateral action, but understood the creditors' anger. It still believes that a mutually agreed restructuring is the best way to preserve value for all stakeholders and is therefore in the best interests of all stakeholders. It remains committed to continuing to communicate with creditors to explore ways to close the commercial gap and reach amicable settlements as soon as practicable. At the same time, it is seeking legal advice on an appropriate response to the petition.
Hongyang Service Group (Holdings) Co., Ltd. is the controlling shareholder of the company and holds 302 million common shares of the company, accounting for about 72.77% of the company's total issued shares. Hongyang Service Group (Holdings) Co., Ltd. is a wholly-owned subsidiary of Hongyang Group Co., Ltd. Hongyang Group Limited's sole shareholder is Hongyang International Limited, and 100% of the issued share capital of Hongyang International Limited is beneficially owned by Mr. Zeng Huansha, individually and through Hongyang Group (Holdings) Limited (an entity incorporated in the Cayman Islands).