Ascent Bridge says that its chairman and CEO, Sun Quan, is facing a bankruptcy application.
The company did not disclose the amount claimed in its announcement to the stock exchange on March 10.
“The board has been made aware that the application arose from Mr Sun having guaranteed repayment of a loan extended by the applicant to one of Mr. Sun’s wholly-owned companies, which is not a subsidiary of the group,” the company states.
“Mr Sun has informed the board that he is in the process of settling the matter and will inform the board of its progress,” the company adds.
According to Ascent Bridge, it has existing business continuity plan to manage the keyman risk for business continuity and will keep shareholders updated on any material developments on a timely basis.
Ascent Bridge used to be called AEI Corp, which was in metal parts making.
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Under Sun, the company tried to be a distributor of drinks including a sub-brand of Moutai white liquor outside China.
According to the company last December, the proposed acquisitions to acquire some of the distributorships did not go through.
Ascent Bridge, as at 2.22pm, changed hands at 54 cents, down 3.57%.
