Shares Held by Hawtai Motors Are Frozen for 4th Time This Month for USD414 Million Debt
Zhang Yushuo
DATE:  Nov 21 2019
/ SOURCE:  yicai
Shares Held by Hawtai Motors Are Frozen for 4th Time This Month for USD414 Million Debt Shares Held by Hawtai Motors Are Frozen for 4th Time This Month for USD414 Million Debt

(Yicai Global) Nov. 20 -- Hawtai Motor Group's nearly 20 percent stake in Liaoning SG Automotive Group has been frozen for three years by court order, SG Automotive said in a statement yesterday.

This marks the fourth occasion since the start of the month that stock held by Hawtai has been put on ice.

The Tianjin Huataitong Automobile Sales unit of Beijing-based Hawtai defaulted on a CNY12.2 million (USD1.74 million) payment to the plaintiff, Zhejiang Zhuji Wanbao Machinery, who sued Hawtai claiming it was jointly liable on the debt, according to the statement.

Hawtai had overdue debt of about CNY2.9 billion (USD414 million) to the plaintiff, the court in Zhuji in China's southeastern Zhejiang province trying the case was told. The company is in talks to resolve the dispute, per its statement.

Hawtai acquired 14.99 percent shares of SG Automotive in September last year and now directly holds a 19.77 percent stake.

The company has been branded a dishonest debtor six times, with a total of 37 of its staffers blacklisted and barred from lavish consumption such as hotel stays and plane travel for such conduct, according to data from the Tianyancha online corporate information platform.

Hawtai had a total interest-bearing debt of CNY29.4 billion as of the end of March, 68 percent of which was short-term, the Securities Times reported.

Several Hawtai staffers claimed the company had defaulted on wages for over eight months and its factories across China had laid off workers or suspended production, Chinese auto media website Auto-time previously reported.

SG Automotive's main businesses are auto parts, commercial vehicles and light vehicles. Hawtai researches, develops, produces and sells complete vehicles and core components, as well as plying auto financing and car rental lines.

Editor: Ben Armour

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Keywords:   Hawtai Motor Group