Chinlink in Loan Enforcement Talks as Collateral-Rich Subsidiary Negotiates Debt Restructuring

Chinlink International Holdings Limited ( (HK:0997) ) has provided an update.

Chinlink International Holdings disclosed that its indirect wholly owned PRC subsidiary, Chinlink Commercial Management (Hanzhong), is involved in litigation related to an outstanding bank loan of about RMB117.4 million, secured against land use rights, construction projects in Hanzhong and personal properties in Xi’an. An enforcement order restricting transfer and further pledging of these collaterals was issued and later revived after initial withdrawal when negotiations over a debt restructuring plan stalled.

The company has since submitted revised restructuring proposals, with the bank agreeing in principle to continue talks and indicating that it may lift the enforcement order and release the collaterals once a formal restructuring agreement is reached. Chinlink emphasized that the collateral value, recorded at roughly HK$623.7 million versus loan principal and interest of about HK$147.6 million, is more than sufficient to cover the exposure and that current restrictions do not affect the subsidiary’s day-to-day use of the assets, though the bank retains the right to resume legal action if negotiations break down.

More about Chinlink International Holdings Limited

Chinlink International Holdings Limited is a Bermuda-incorporated company listed in Hong Kong that operates through subsidiaries in mainland China. Its businesses include commercial management and property-related operations, with assets such as state-owned construction land use rights and construction projects in Hanzhong City, which form a significant part of its collateral base.

Average Trading Volume: 704,517

Technical Sentiment Signal: Sell

Current Market Cap: HK$25.72M

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