General Announcement::RESULT OF PRC COURT HEARINGS
Issuer & Securities
CHINA ENVIRONMENT LTD.
CHINA ENVIRONMENT LTD. - SG1Y42946521 - 5OU
Date &Time of Broadcast
Announcement Sub Title
RESULT OF PRC COURT HEARINGS
Submitted By (Co./ Ind. Name)
MGR CORP AFFAIRS
Description (Please provide a detailed description of the event in the box below)
The Board of Directors (the Board ) of China Environment Ltd. (the Company )
refers to the Company s announcement dated 6 February 2017 informing the shareholders
of civil suits against the Company s wholly owned subsidiary Fujian Dongyuan
Environmental Protection Co., Ltd ( FJDY ). The Company wishes to update on the following
Civil Suit by Zhongxin Bank ( ZXB ) against FJDY as announced on 9 November 2016.
Judgement has been awarded to plaintiff ZXB. FJDY is liable for the RMB36.67
million loan and loan interest of RMB563,870. FJDY shall pay within 10 days of the effective
date of judgement, together with punitive interest at the rate of 9.46125% per annum from 19
Dec 2016 up to the full settlement date. In the event, that FJDY does not make payment of
the judgement sum (and interest), ZXB has the right to sell off the land use rights and
property assets of FJDY which had been pledged as security for this loan. ZXB will be
entitled to priority claim on the first RMB21.4 million sales proceeds received and also
priority claim on the RMB19.65 million of trade receivables FJDY has pledged to ZXB for this
The guarantors Huang Min, his wife (Chen Fen Hua), shall be liable for the balance
amount in the event that the value of the FJDY pledged assets is insufficient to satisfy the
amount due to ZXB. The guarantors have right to claim compensation against FJDY.
FJDY shall pay ZXB legal fees of RMB99500 and property preservation fee of
RMB5000 within 10 days of effective date of judgement. The court costs of RMB229234
should be borne by FJDY, Huang Min and his wife.
The Company will update the shareholders as and when there are further material
announce hearing result zhongxin.pdf
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