SINGAPORE - Mainboard-listed logistics company Vibrant Group said on Wednesday (Aug 8) that assets of two of its subsidiaries have been frozen following a pre-trial asset preservation court order.
The two are Chongqing Heijin Industrial Co and Coatang Coal Mine Resources Development Co, both of which are held through the company's wholly owned subsidiary, Blackgold International Holdings.
Vibrant said that it was notified on Monday that China Minsheng Banking Corporation has successfully applied to the Chongqing No 1 Immediate People's Court for an order relating to pre-trial asset preservation to freeze bank deposits amounting to an aggregate of 80 million yuan (S$15.9 million) or freeze other assets amounting to an equivalent value, against the two subsidiaries.
Vibrant said: "The defendants were notified of the application only on Aug 3. The applicant had obtained the order from the court on July 24."
The order states that if no litigation or arbitration action is filed against the defendants by the applicant within 30 days from the date of the order, the order shall be cancelled. In addition, the defendants are entitled to apply to the court for reconsideration within five days of receipt of the order, Vibrant said.
The company added that the following assets of the defendants have already been frozen:(a) certain bank accounts of Chongqing Heijin;(b) all mining rights of Caotang for a period of three years; and(c) 100 per cent of the shares of Chongqing Guoping Shangmao Trading Co, a wholly owned subsidiary of Chongqing Heijing, for a period of three years.
The defendants, in consultation with the company, are seeking legal advice from their lawyers in China and will fully enforce the rights of the defendants and address any proceedings that may arise, Vibrant said.
"For the avoidance of doubt, the group has not provided any corporate guarantee to the applicant for bank loans granted to the defendants by the applicant," Vibrant added.