SINGAPORE - Suspended Chinese textile maker Foreland Fabrictech has not been informed of the interest and late payment amounts on a loan agreement involving its former chairman, the company said on Monday night (July 16) in response to queries from the Singapore Exchange (SGX).
The size of those charges, slapped on top of a private loan of 7 million Chinese yuan (S$1.4 million), will be known only when the loan is repaid to the Quanzhou People's Court in China, according to the company.
Meanwhile, real estate purchases and rentals and high-speed rail travel are some of the spending restrictions imposed by the court on Foreland Fabrictech and its wholly owned Fujian Jinjiang Fulian Knitting subsidiary, the company told SGX, when pressed for more details on the Chinese court's judgment.
The SGX has queried Foreland Fabrictech - which is insolvent - over its revelation on July 9 of the Chinese court enforcement notice for an old lawsuit over the 7 million yuan loan, which the present board said it had not known about.
The loan agreement with one Hong Youling was entered into by the company and its subsidiary, as well former executive chairman Tsoi Kin Chit, former executive director Cai Fengquan and another Chinese company.