Vibrant Group’s BIP 31%-owned Chinese associated company, Vibrant Pucheng Logistics (Chongqing), has received a hearing notice from the People’s Republic of China Court.
The notice is related to legal proceedings commenced by Figtree Projects (Shanghai).
Figtree Projects is suing Vibrant Pucheng in connection with a loan granted to it by the former. According to Vibrant Group, Vibrant Pucheng had failed to repay Figtree Projects upon its demand in according with the loan agreement.
As such, Figtree Projects is claiming against Vibrant Pucheng for an aggregate amount of RMB67.1 million ($13.0 million). The sum comprises the principal amount of RMB 61.2 million owed to Figtree Projects and interest of RMB6.0 million. The interest amount is calculated at the rate of 6% per annum up to Jan 10.
The legal proceedings are not expected to impact the group materially. The principal amount and interest have also been accounted for in Vibrant Pucheng’s financial statements.
Shares in Vibrant Group closed flat at 7.3 cents on April 24.
