What’s new: Embattled conglomerate Baoneng Group Tuesday denied a court statement that the whereabouts of Chairman Yao Zhenhua were unknown and the court had to deliver several documents to him in the form of public statements.
Yao appeared in person Monday at the company’s auto factory in Shenzhen, Baoneng said through its social media WeChat account. It posted a picture of Yao at the factory.
Three insiders from Baoneng also confirmed to Caixin that Yao is not missing and is still in charge of the company’s operations.
Normally, courts send legal documents to the address of a recipient’s household registration, or identification card, or work, a lawyer told Caixin. If a recipient’s signature can’t be collected upon delivery, the court will announce that the whereabouts of the recipient is unknown, the lawyer said.
The court document is related a 700 million yuan ($110 million) loan dispute involving Yao, Baoneng and Guangzhou Bank. The document was sent by the Guangzhou Intermediate People’s Court. The lawsuit is part of more than 2,700 legal cases Baoneng and its subsidiaries currently face.
The background: Baoneng, a Shenzhen-based private property and financial services company, is another Chinese conglomerate facing a massive debt crisis. Baoneng is best known for its failed 2015 hostile takeover attempt of major property developer China Vanke Co. Ltd.
With 200 billion yuan ($31 billion) of debt, Baoneng faces employees demanding unpaid wages, suppliers clamoring for overdue payments and creditors seeking loan payments.
The company is frantically trying to raise cash by selling assets and asking for government support.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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