Hu An Cable Holdings Asked To Dispose 3 PRC Subisidiaries

Hu An Cable Holdings has been asked by the PRC local government of Wuxi City, Guanlin Town to dispose of the assets and liabilities of three PRC subsidiaries, namely Wuxi Hu An Wire and Cable (Wuxi Hu An), Wuxi Shenhuan Electric and Shenhuan Cable Technology.

This came after the group’s announcements of a full provision for a prepayment of approximately RMB310 million that was made to a major supplier facing liquidation, as well as the receipt of notifications by a subsidiary, Wuxi Hu An, from 12 customers stating the termination of payments under any existing purchase contracts, removing Wuxi Hu An from the customers’ approved vendor list, and the customers reserving their legal rights to obtain compensation from Wuxi Hu An for any loss or damages suffered.

The Wuxi City, Guanlin Town government has initiated the proposal in order to assist the group to overcome the financial and operational difficulties which it currently faces and to safeguard the livelihoods of the group’s employees as well as protect the interest of the group’s shareholders and creditors.

The consideration of the disposal, to Yixing Jinxiao Copper Industry, will be determined based on a valuation of the assets and liabilities of the three subsidiaries.

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