China Court Upholds 3.515 Billion Yuan Judgement Against EC World REIT's Subsidiary
MT Newswires09-03 16:02
EC World Real Estate Investment Trust (SGX:BWCU) said a court in China has upheld a judgment making its subsidiary Beigang and other entities jointly liable for 3.515 billion yuan to Hangzhou Fenhua Investment, according to a Wednesday filing to the Singapore stock exchange.
In May, the Hangzhou Intermediate People's Court ruled that Beigang and the other entities be jointly liable for a total amount of 3.515 billion yuan.
With the latest order, the judgement is now final and conclusive and a contingent liability will be binding on Beigang.
As the contingent liability is significantly higher than Beigang's current net asset value the latter will need to file for bankruptcy and enter into liquidation.
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