The company owned by Ye Junheng, founder of Zhuoyue Group, and his wife, Zhong Peiyun, borrowed 310 million yuan from a creditor in 2015, but Ye Junheng repaid only 15 million yuan in 2019. The creditor filed a petition with the High Court yesterday (December 12) to demand that Yip Chun Heng, Chung Peiyun and their company repay the balance of $295 million with principal interest, interest and compensation.

The plaintiff is Chen Jianwen, director of Haifu and chairman of Zhuo Hyatt Holdings (00653.HK). The three defendants are Shinichi Co., Ltd. (Shinichi), Ye Junheng and Zhong Peiyun. According to the complaint, Haifu reached an agreement with Shinichi in December 2015 to lend HK $280 million to Shinichi, while the plaintiff also reached an agreement with Shinichi to lend HK $310 million in early 2016, and Ye Junheng signed an agreement on behalf of the company.

According to the complaint, the terms of the loan agreement are the same as those when Haifu lent 280 million yuan, and there are also implied terms. Ye and his wife are the guarantors of the loan, and if it were not for Ye and his wife, the plaintiff would not have borrowed money from Shinichi.