China-listed Sainty Marine has been sued by Bank of Suzhou over a CNY40 million (USD6.4 million) loan dispute, the second lawsuit brought against the company in the wake of a series of defaults on debts.
On 12 June, the Bank of Suzhou filed the lawsuit against Sainty Marine and its parent company, Jiangsu Sainty International Group, at the Nanjing City Xuanwu District People’s Court, a stock filing of Sainty Marine said.
The bank demanded immediate payment of the CNY40 million in principal and CNY482,200 in interests. Sainty Marine borrowed the principal in November 2014, with a one-year term.
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In May, the bank claimed the loan was due ahead of schedule as Sainty Marine had defaulted on a series of debts owed to third parties.
Also in May, the Bank of Jiangsu sued the company and three of its former executives and demanded the payment of CNY300 million in principal and CNY2.4 million in interests.
In September 2014, the company borrowed the loan due September 2015 from the bank to finance a private placement. However, the company failed to meet the schedule to complete the private placement by end of March this year.