China: Shareholder in Shanghai Lingyun Curtain Wall uses stake in firm as loan collateral

Shanghai Lingyun Curtain Wall Science & Technology Co Ltd said its second-largest shareholder, Guoji Environment High-Tech Co Ltd, has used its 19.54% stake in the listed company, amounting to a total…

Shanghai Lingyun Curtain Wall Science & Technology Co Ltd said its second-largest shareholder, Guoji Environment High-Tech Co Ltd, has used its 19.54% stake in the listed company, amounting to a total of 68.18 million institutional shares, as collateral for two bank loans. Guoji Environment used 38.38 million institutional shares as collateral for a CNY 36 million yuan loan from a Shijiazhuang branch of Huaxia Bank to Tianjin Santai Investment Co Ltd. Guoji Environment also used 29.8 million institutional shares as collateral with the same bank for a CNY 28 million loan to Guangdong Huanbohai Real Estate Development Co Ltd. For both loans, the shares will be held as collateral for one year starting 9 June 2003. (USD 1 = CNY 8.277).