Huishan Dairy says HSBC demanding repayment of $214 mln in loans

Embattled China Huishan Dairy Holdings Co Ltd said HSBC was demanding the repayment of $214 million of loans following one or more counts of default.

The move adds to pressure on Huishan, which has held talks with creditors and regional government officials in China asking for help to roll over some loan facilities until it can plug a gap in its finances.

Huishan`s woes came to light when its stock plunged 85 percent in March before being suspended. Since then most of its directors have quit, it has missed loan payments and lost contact with a key executive in charge of its finances and cash. It is also under investigation by the Hong Kong securities regulator.

HSBC told Huishan in two separate letters it had terminated different loans facilities from 2015 and 2014 and was asking for repayment, Huishan said in a securities filing late on Monday.

The loan facility from 2015 had a U.S. dollar tranche with $180 million in principal outstanding and another HK$156 million ($20 million) from a Hong Kong dollar tranche, with a deadline for the repayment three days from Monday.

HSBC demanded immediate repayment of $13.7 million for a separate 2014 loan, Huishan added.

Huishan said it is seeking legal advice on the letters.

HSBC declined to comment when contacted by Reuters on Tuesday.($1 = 7.8131 Hong Kong dollars)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

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