(Yicai Global) July 27 -- Coolpad Group Ltd. [HK:2369] announced in Hong Kong Exchanges and Clearing Ltd. (HKEX) on July 27 it received service of a civil complaint from Ping An Bank Shenzhen Branch (plaintiff) against Yulong Computer Telecommunication Scientific (Shenzhen) Co. (defendant), two companies affiliated with Coolpad and owned by its largest shareholder and guarantor, which it strongly implies but stops short of actually saying is none other than fugitive financier Jia Yueting himself.

The complaint alleges that plaintiff and defendant signed a General Credit Limit Contract and separate Loan Contract, respectively on Feb. 16 and Aug. 29 last year. The plaintiff extended a loan of USD11.76 million (CNY80 million) to the borrower, to fall due Aug. 15. The guarantor signed a guaranty contract with the plaintiff securing all the borrower's debts under the two contracts. The plaintiff argued the loan contract stipulates plaintiff has the right to call in the loan if the operating or financial status of the borrower or its guarantor deteriorates, or the main property of the borrower, shareholder or actual controller of the borrower or legal representative of the guarantor is subject to coercive measures such as attachment of property. A Shanghai court froze the assets of Jia Yueting and his wife this month to the tune of CNY182 million, thus presumably triggering the contract language shortening the loan term. Jia bade adieu to his China-side woes when he absconded to the US earlier this month, prompting Zeng Liqing, co-founder of tech titan Tencent Holdings Group Inc. [HK:0700] to brand Jia's ever-shrinking imperium "evidently a Ponzi scheme." 

The plaintiff moved the court to order defendant to immediately repay principal and interest on the loan -- in total CNY80 million -- award double interest on the debt whose performance is in abeyance during the judgment period and to tax the defendant and its guarantor jointly for all attorney's fees and other expenses in this case.

Coolpad countered that the loan is not yet due. It has retained counsel to actively collect evidence and defend the case, it said.

LeEco subsidiary Leshi Internet Information & Technology Corp [SHE:300104] purchased 780 million shares of Coolpad from Guo Deying for CNY3.508/share on June 28, taking 17.9 percent of total capital stock. Thus, Leshi became Coolpad's second-largest shareholder at total cost of HKD2.73 billion. Leshi took about 11 percent shares of Coolpad from Guo Deying again for HKD1.9/share on June 17 at total cost of HKD1 billion to become its largest shareholder.