SINGAPORE - Chinese canned vegetable and fruits producer Sino Grandness Food Industry Group said it is still in negotiation with creditor and shareholder Soleado Holdings to extend the repayment of some US$22 million.
In a Singapore Exchange filing on Thursday morning (Feb 7), the company said it is currently preparing to repatriate funds from China by way of dividend, a move which it said requires Chinese regulatory approval. It added it would make the necessary announcement as and when there is any material development.
The company had remitted $34,958 on January 23, 2019, for payment of legal fees and reimbursement of the amount of all costs and legal expenses to Soleado, adding at the time that it was in negotiation to "settle the matter amicably".
Sino Grandness was served a letter of demand by Soleado, an investment holding company, on Jan 8 for payment of US$21.2 million and $30,000 by Jan 21. This was for the outstanding loan principal amount, outstanding interest, default interests payable and reimbursement of the amount of all costs and expenses in relation to a loan agreement dated April 13, 2016, as well as the costs and expenses for legal and professional fees under a repayment framework agreement dated July 20, 2017.
Shares of Sino Grandness closed on Monday at $0.052, down 0.3 cents.