(Yicai Global) Dec. 27 -- Authorities have frozen CNY4.4 million (USD673,000) across eight of Shandong Longlive Bio-Technology Co.'s bank accounts due to repayment defaults, even though it hasn't received a court order, the company told Shenzhen Stock Exchange in response to an inquiry.
The firm is likely to experience a temporary liquidity blip as it seeks to settle outstanding payments by the end of the year, it said. The company is taking a number of measures, such as better using illiquid assets and borrowing money, to help alleviate the shortage and repay its debts.
Shandong Longlive attracted public and regulator attention after defaulting on a CNY140 million loan linked to an asset management product that Shanghai Lujiazui International Financial Asset Exchange Co., a unit under Ping An Insurance Group Co. of China Ltd., distributes. Some 118 investors poured money into the product, named Datong Securities Tongji No. 9 Collective Asset Management Plan.
The firm also failed to repay a CNY199 million loan which Guosheng Securities Asset Management Co. issued through Fangzheng Dongya Longlive Bio-Technology Liquid Loan Collective Fund Trust Plan. The lender will work with the company to arrange a repayment plan, Taiwanese news outlet China Times cited it as saying in a statement.