-- Huajin International (HKG:2738) said its chairman and chief executive were subject to a consumption restriction order due to the alleged nonpayment of amounts owed, according to a Hong Kong bourse filing Tuesday.
The company's chairman Xu Songqing and chief executive Chen Chunniu have been subject to the consumption restriction order, effective Nov. 25.
The case stems from the alleged non-payment of 130 million yuan by two of the company's units Jiangmen Huamu Metals and Jiangmen Huajin Metal Product, under a finance lease arrangement. As of April 30, 16.4 million yuan was still owed to the creditors.
Both Xu and Chen have been negotiating with creditors to resolve the matter and the company expects to reach a settlement by the end of August.