Pak Tak Int'l (02668.HK) announced that it has recently received a written civil judgment issued by the Intermediate People's Court of Shenzhen, Guangdong Province, involving a legal lawsuit filed by banks to recover the unpaid amount under a loan agreement.
According to the civil judgment, Shenzhen Jinsheng is required to repay a total loan principal of 0.279 billion RMB, and pay approximately 7.8 million RMB in loan interest to the banks, as well as relevant default interest and compound interest.
In addition, Pak Tak Int'l and its several subsidiary companies are jointly and severally liable for the debt of Shenzhen Jinsheng under the loan agreement. Shenzhen Jinsheng and its guarantors (including Pak Tak Int'l and its several subsidiary companies) have been ordered to collectively pay approximately 1.5 million RMB for acceptance fees and application fees for property preservation orders in court.
Pak Tak Int'l stated that it has sought legal advice on the civil judgment from its China legal advisor, including challenging the amount of loan interest payable by Shenzhen Jinsheng under the loan agreement. At the same time, the group management will continue to seek a settlement with the banks regarding the matters arising from the breach.
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