Asia
East China Engineering Science and Technology Subsidiary Defaults on Loans Due to Government Non-Payment
East China Engineering Science and Technology (SHE:002140) 97%-owned subsidiary Weng'an Donghua defaulted on 56.8 million yuan in principal and 3.0 million yuan in interest payments due May 4.The default stemmed from the local government party's failure to pay service fees for the Caotang "Twelve Ponds" landscape project in Guizhou Province, according to a Friday filing with the Shenzhen bourse.The company said it will urge Weng'an Donghua to seek a loan extension and pursue legal action against the government party.The subsidiary faces potential penalties and asset freeze risks.Shares of the engineering services provider closed 9% lower Friday.
SHE:002140
