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Wuzhou acknowledges financial difficulty, payment defaults

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Wuzhou acknowledges financial difficulty, payment defaults

Wuzhou International Holdings Ltd. disclosed that it is experiencing financial shortage and that it has defaulted on some payment obligations.

The statement — made when the company applied to resume trading in Hong Kong on June 15 at 9 a.m. local time, after being suspended since May 25 — is in response to a Hong Kong Economic Journal article that said the Chinese developer is having financial difficulty and is in danger of being unable to pay interest expenses for 2018.

Wuzhou added that it is unaware of any plans to wind up the company or any of its subsidiaries. The board is also in talks with creditors for alternative payment arrangements.

The HKEJ also reported earlier that a substantial Wuzhou shareholder was forced to liquidate its shares. The company confirmed the news, adding that Boom Win Holdings Ltd. reduced its holding in the company to 21.23%.

In addition, Wuzhou addressed a separate media report that it misappropriated billions of yuan worth of capital with Jiangsu Wufeng Logistics Trade and Investment Co. Ltd. It reiterated that it owns a 5.13% stake in the entity but that it is not a subsidiary.

Wuzhou said it reserves its right to commence legal proceedings against International Finance News, which reported on the connection. Wuzhou said the claims were false, misleading and damaging to its reputation.