Shenzhen Baoneng Investment Group chairman Yao Zhenhua said that he had contacted the Guangzhou Intermediate People’s Court and received necessary legal documents after seeing media reports that the court mentioned his “disappearance” in an announcement addressing a financial loan contract dispute related to the company.
Yao said that the firm has encountered some temporary liquidity difficulties. In response to the court’s announcement, Yao said the dispute relates to a logistics project backed by a 700 million yuan ($109.9 million) from the Bank of Guangzhou, and the company is working to reach a settlement with the bank as soon as possible.
On March 17, the Guangzhou Intermediate People’s Court said in an announcement that due to Yao’s absence, the court sent legal documents related to a financial dispute to the company.
Yao’s “disappearance” quickly attracted public attention. Later, the company denied Yao was disappearing in an article posted on its Wechat account, saying that Yao had visited Baoneng Auto’s plant in Shenzhen to oversee the resumption of work there.
On Tuesday, the Guangzhou court withdrew the announcement.
Since the second half of last year, the company has faced an ongoing debt crisis. In September 2021, Yao said in a meeting that Baoneng Group has continued to recoup funds through initiatives including project sell-off returns and disposing of a number of high-quality assets, in a bid to overcome its financial difficulties.
Photo:VCG
