The company was informed that Mr. du Aidi, Ms. Yang Meili and Ms. Yang Jiamin of Ammann Consultants Limited had been appointed by Fresh Idea Ventures Limited (creditors) as joint and individual receivers and managers of a total of 2.02 billion shares of the company on December 21, 2020. These shares are beneficially owned by Crown International Holdings Limited and Crown Land Holdings Limited respectively. The relevant shares account for about 58.86% of the issued share capital of the company as at the date of this announcement.
On January 12, 2016, Crown International Group (then wholly and beneficially owned by Redstone Capital Corporation) (as a client) entered into a margin financing agreement with Huarong International Securities Limited (as a broker), pursuant to which Huarong International Securities agreed to provide margin financing to Crown International Group in respect of the margin securities account opened with Huarong International Securities. Redstone is wholly and beneficially owned by Ms. Xiong Min, Chairman and Chief Executive Officer of the company. On July 26, 2019, Redstone will sell and transfer the entire issued share capital of Crown International Group to Topper Alliance Limited (a company wholly and beneficially owned by Mr. Dong Feng) for a consideration of US $1 million, while Topper Alliance shall be responsible for repaying the then outstanding margin loan (which was approximately HK $528 million at the time of the transfer), further interest to be incurred and the related costs owed by Crown International Group to Huarong International Securities within 18 months. As a consideration for the indirect transfer of 800 million shares held by Crown International Group.
Under Huarong International Securities Initiative, Huarong International Securities transferred (I) all amounts owed to Huarong International Securities under or in connection with Crown International Group's margin loan and margin Securities account to creditors on June 29th, 2020. The amount will be about HK $497 million on June 29th, and will be due and payable at the request of creditors. And Huarong International Securities all existing securities interests, guarantor mortgages and all other rights, interests, compensation and benefits under or in connection with margin loans and margin securities accounts. After the transfer, the relevant shares have been secured by Crown International Group and Crown Land Group as security for the debt in favour of creditors under two mortgage deeds dated 29 June 2020.
On 4 December 2020, the creditor requested immediate repayment of the debt and indicated that if the debt was not repaid before 8 December 2020, the creditor would take enforcement action and the debt was overdue on the date of this announcement.
The appointment of a receiver may result in the sale of the relevant shares to other third-party purchasers, and if any purchaser, together with its parties acting in concert, has a voting interest of 30% or more in the company after the acquisition of the relevant shares, it may trigger a mandatory general offer under the Takeovers Code. The company has been informed by the receiver that as of the date of this announcement, the receiver is in the early stages of preparation for the takeover of the relevant shares and has not identified any potential buyers.
In addition, the company's shares will resume trading on January 14, 2021.