Zhisheng Group Holdings (08370) issued an announcement. Since the borrower did not fulfill its obligation to repay the loan, the bank later...
According to Zhitong Finance App, Zhisheng Group Holdings (08370) issued an announcement. Since the borrower did not fulfill the obligation to repay the loan, the bank later requested the Third People's Court of Dongguan City, Guangdong Province to issue an order (including) confirming the bank's right to enforce the pledge and sell such properties (right to sell) through an auction in order to repay the borrower's debt to the bank.
The hearing took place on August 22, 2023, and the court handed down a civil ruling on January 16, 2024, according to which the bank's right to sell was confirmed. The Board is seeking comments on the ruling and considering appealing to the courts. As disclosed in the company's annual report for the year ended June 30, 2023, the Group has accrued asset (i.e. such property) impairment losses of approximately RMB 49.8 million in this financial year. Furthermore, the Group has been searching for other suitable locations to move the Group's production sites currently located in such properties when the bank enforces the right to sell.