A 20%-owned associated company of Catalist-listed commercial and industrial real estate solutions company Figtree Holdings 5F4 has received a hearing notice from the mainland Chinese courts for missing loan repayments.
According to a July 22 bourse filing, Vibrant Pucheng Logistics (Chongqing) had failed to make repayment to Shanghai Pudong Development Bank in accordance with loan agreements. The bank is now claiming against Vibrant Pucheng for an aggregate amount of RMB30.5 million ($5.63 million).
Figtree Developments, a wholly-owned subsidiary of the Singapore-listed company, together with other shareholders of Vibrant Pucheng, had extended corporate guarantees in favour of Shanghai Pudong Development Bank to secure such loan facilities at their inception.
The claim includes a principal amount of some RMB29 million; interest amounting to RMB1.3 million, calculated up to Aug 15, 2023; and fees, including court fees, amounting to some RMB195,571.
The loan facilities were subsequently novated by Shanghai Pudong Development Bank to China CITIC Financial Asset Management, and the latter took over the legal proceedings commenced against Vibrant Pucheng.
According to the filing, Vibrant Pucheng is currently seeking legal advice on the matter from its Chinese legal advisors.
See also: Figtree wins RMB43 mil contract for Jiangsu Province industrial facility
Figtree Holdings does not expect the legal proceedings to have a material impact on the Group for the financial year ending Dec 31, in view of the latest valuation conducted on Oct 24, 2023 by a China court appointed valuer on the property owned by Vibrant Pucheng. The valuation of the property amounted to RMB407.4 million.
The company says it will make further announcements to update its shareholders when there are any further material updates.
Founded in 2009, Figtree Holdings typically acts as the main contractor for its projects in Singapore, covering new construction, addition and alteration works on existing buildings as well as refurbishment and upgrading of existing buildings. In China and Malaysia, the group provides design, project and construction management consulting services.
See also: Vibrant Group's Chinese associated group sued for RMB67.1 mil for failing to make loan repayments
Figtree was listed on SGX Catalist on Nov 11, 2013.
Shares in Figtree closed flat at 3.9 cents on July 22.
