General Announcement::RECEIPT OF LETTER OF DEMAND/RECEIPT OF GUARANTOR NOTIFICATION
Issuer & Securities
CHINA ENVIRONMENT LTD.
CHINA ENVIRONMENT LTD. - SG1Y42946521 - 5OU
Date &Time of Broadcast
Announcement Sub Title
RECEIPT OF LETTER OF DEMAND/RECEIPT OF GUARANTOR NOTIFICATION
Submitted By (Co./ Ind. Name)
Corporate Affairs Manager
Effective Date and Time of the event
Description (Please provide a detailed description of the event in the box below)
The Board of Directors of China Environment Ltd (the "Company" and, together with its subsidiaries, the Group ) wishes to announce that the Company s wholly-owned subsidiary, Fujian Dongyuan Environmental Protection Co., Pte Ltd ( FJDY ) has received a letter of demand dated 12 October 2016 ( Letter of Demand ) from Bank of China ( Lender ) claiming the repayment of RMB56,055,583 in overdue interest and loan principal for a working capital loan.
Notice is given in the Letter of Demand that, the Bank expects the Company to repay the overdue interest and loan principal upon receipt of the Letter of Demand
Pursuant to the above Letter of Demand, the Lender has also delivered to the Company s wholly-owned subsidiary, Anhui Dongyuan Environmental Protection Co., Ltd ( AHDY ) a notification letter reminding it on its legal obligations with regard to the corporate guarantee it has entered into with the Bank for the above working capital loan.
AHDY is obliged to repay the full sum on behalf of FJDY in the event of default.
The Company is currently considering various options in relation to the demands from banks and will update shareholders accordingly
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