Due to the debt owed to GS Holdings, Zhang, who is GS Holdings’ non-independent and non-executive chairman, has been suspended from his duties.
GS Holdings says it has issued letters of demand (LOD) dated Oct 17 to Zhang Rongxuan and his company Kaifeng Jufeel Biotechnology for the outstanding debt of RMB98.6 million ($18.5 million) to the company. The debt was guaranteed by Zhang and Kaifeng Jufeel.
“Should Zhang and/or Kaifeng Jufeel fail to respond to the letter of demand within 21 days [till Nov 7] of the date of the letter of demand, or that any new settlement proposal made by Zhang is unsubstantiated with evidence of his ability to settle the debt, the board will contemplate initiating legal action against Zhang and/or Kaifeng Jufeel on the advice of the legal advisers of the company,” says GS Holdings (SGX:43A
) in its Oct 17 statement.
