Zhitong Finance App News, Titan Zhihua Technology (00872) issued an announcement. As part of the company's plan to resume trading and to support the resumption plan, the company signed a suspension of repayment agreement with Enlightenment Holdings Co., Ltd. on March 25, 2024. Enlightenment Holdings is the main shareholder of the company and holds approximately 21.9% of the company's total issued shares through its wholly-owned subsidiary Enlightenment Venture Capital Co., Ltd. As of the date of this announcement, the Company owes amounts from multiple outstanding convertible bonds and other loans to several subsidiaries of Enlightenment Holdings.
Under the terms of the suspension of repayment agreement, Enlightenment Holdings has agreed and further prompted several of its subsidiaries to (a) suspend all remedies and actions against the company to seek repayment or payment of outstanding liabilities due to the company; (b) suspend winding-up petitions or take any legal action against the company; and (c) suspend the calculation and calculation of interest and/or default interest (if any) on the outstanding amounts. The suspension of payments takes effect from the date of the suspension of repayment agreement and until September 30, 2024 or other events (whichever is earlier), such other events include (i) issuing a winding-up order against the company; (ii) canceling the listing status of the company's shares on the Stock Exchange; or (iii) any other significant change in the Group's circumstances.
On March 14, 2024, the company received a statutory claim from the legal representative of Ma Zhigang, the company's principal shareholder, under section 178 (1) (a) or 327 (4) (a)) of the Companies (Liquidation and Miscellaneous Provisions) Ordinance (Chapter 32), requiring the company to pay a total of HK$59.51 million (i.e. the company issued a total of HK$59.51 million in principal and overdue interest on HK$53.7 million convertible bonds due in 2023) to creditors within three weeks from the date of delivery of the statutory claims The company filed a winding-up petition.
In view of the existing petition and the scheduled hearing of the petition, the company has been seeking legal advice on the appropriate course of action for the above statutory debt repayment requirements and evaluating its impact on the company's situation.
Trading of the company's shares continues to be suspended.