Owner of HK01 and Nan Hai Corporation Limited sued by China Merchants Bank over loans in excess of US$53.4m

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6th July 2022 – (Hong Kong) A subsidiary of the parent company of the Hong Kong media HK01, Nan Hai Corporation Limited, was sued in the High Court by China Merchants Bank yesterday (5th) to recover more than US$53.4 million (equivalent to approximately HK$419 million) in loans owed by the company. China Merchants Bank sued True Vision Limited, Nan Hai Corporation Limited and its chairman Yu Pun-hoi, both as the guarantor of the loan and demanded repayment from the other parties. It also requested the court to declare that the entire shares of Orange Sky Golden Harvest Entertainment Company Limited as collateral now belong to China Merchants Bank. This is the second time Yu was charged for the secured bond after being sued by China Construction Bank in early June.

According to the filing of the documents, China Merchants Bank Shenzhen Branch reached a loan agreement with True Vision Limited on 7th February, 2018, and the agreement was updated twice on 24th November and 20th December, 2021. According to the agreement, China Merchants Bank lent US$150 million (equivalent to approximately HK$1.177 billion) to True Vision Limited, and True Vision Limited also acted as the guarantor of the loan, using its 100% shares of Orange Sky Golden Harvest Entertainment Company Limited as collateral.

Nan Hai Corporation Limited and Yu also acted as guarantors of the loan. After the loan agreement expired on 21st February, True Vision Limited still did not repay all the loan. As of 13th June this year, True Vision Limited still owed US$50.8 million (equivalent to approximately HK$398 million), handling fees of US$1.661 million (equivalent to approximately HK$13 million) and interest of US$940,000 (equivalent to approximately HK$7.39 million) . The plaintiff now demands the defendant to repay the money and request the shares in Orange Sky Golden Harvest Entertainment Company Limited to belong to China Merchants Bank.


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