Winding-up petition against Sino-Ocean Capital, which holds 70% of Dasin Retail Trust’s trustee-manager postponed to Aug

The trust adds that it will be disputing the termination of the shareholders’ agreement by one of its shareholders.

The winding-up petition against Sino-Ocean Capital has been postponed to Aug 16 from June 7, says Dasin Retail Trust CEDU in a June 5 statement. Sino-Ocean Capital is the sole shareholder of New Harvest, which holds 70% of the shares in Dasin Retail Trust’s trustee-manager.

In its previous statement on May 4, the trustee-manager of Dasin Retail Trust said that the winding-up petition is not likely to affect the trust negatively.

Further to its statement, the trust added that New Harvest will be disputing the termination of the shareholders’ agreement by Zhang Zhengcheng.

Zhang, a director of the trustee-manager and a unitholder of the trust, sought to terminate the shareholders’ agreement entered into on July 23, 2021, on May 2.

The shareholders’ agreement was entered into between Zhang, New Harvest, Shun Fung Investment Limited and the trustee-manager at the time. Zhang’s termination is based on the event of the winding-up petition filed against Sino Ocean Capital, which is a default event under the shareholders’ agreement.

“In this regard, the board understands it is New Harvest’s position that the winding up petition filed against Sino Ocean Capital, without any application for the appointment of any administrator to Sino Ocean Capital, is not an event of default under the shareholders’ agreement,” says Dasin Retail Trust in its June 5 statement.

As such, the shareholders’ agreement remains valid and “in full force and effect”.

“New Harvest has put Zhang Zhencheng on notice that his purported notice of termination was invalid and New Harvest requires him to withdraw the termination notice, and that any further act(s) based on Zhang Zhencheng’s termination of the shareholders’ agreement, whether by him or otherwise, are similarly invalid and of no legal effect,” adds the trust.

As at 3.02pm, units in Dasin Retail Trust are trading 0.6 cents lower or 4.51% down at 12.7 cents.

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