On July 25th, Glon Hui announced that Chinanewtown (01278.HK) has issued an application letter to the bank after discussions, which includes (i) applying to postpone the repayment date of the current overdue bank loan principal of RMB 20 million in the joint venture enterprise; (ii) Chinanewtown agrees to coordinate the joint venture enterprise to fulfill its payment obligation of the current overdue principal during the extension period; (iii) and requesting the bank to restore the normal state of the bank loan after the joint venture enterprise fulfills its payment obligation in the extended period. After further discussions, Chinanewtown has received a reply letter from the bank. The bank agreed to postpone the repayment date of the current overdue principal and related penalty interest of the joint venture enterprise to July 31, 2024, and required Chinanewtown to coordinate the joint venture enterprise to pay off the current overdue principal and related penalty interest before July 31, 2024 (extension). If the joint venture enterprise fails to fulfill its payment obligation before July 31, 2024, the bank will reserve the right to take legal action against the joint venture enterprise and Chinanewtown, including but not limited to initiating a lawsuit.
The board of directors believes that the extension will reduce the repayment pressure of the joint venture enterprise and reduce the risk of triggering the guarantee of Chinanewtown. The company will closely monitor the development of the matter and issue an announcement in a timely manner or as needed according to the listing rules.
