Household again in financial problems
Huishan Dairy, the Chinese partner of FrieslandCampina, has again encountered financial problems. The bank HSBC demands $ 214 million from the Chinese dairy processor. It involves repayment of multiple loans. This is what news agency Reuters reports on Tuesday, September 12.
HSBC’s demand creates extra pressure at Huishan Dairy. The Chinese dairy processor has recently begun conducting discussions with creditors and regional government officials. The company hopes to be able to conclude new loans until it can detect the gap in the finances. HSBC could occasionally throw in food to throw food.
Suspension of the stock market
The problem was revealed in March when Huishan Dairy dropped 85% on the stock market. After that, the company was suspended from the same stock exchange . Since then, it has been worse with the Chinese company. For example, the payments have been missed and the company has lost contact with the director, who is responsible for the finances.
‘s letters The bank informed Huishan Dairy in 2 letters that it had multiple loans at HSBC. These were closed in 2014 and 2015. In 2015, a total of $ 200 million was borrowed. For that amount, the bank gives a deadline of 3 days, effective from Monday, September 11th.
In 2014, according to the bank, Huishan also borrowed $ 13.7 million. That amount wants to refund HSBC immediately.
Huishan more often in trouble
It is not the first time Huishan becomes involved. In April it was reported that Huishan Dairy would be almost bankrupt. In March, Ge Kun, the financial director, suddenly went on sick leave. Since then she has been trackless. Huishan Dairy has billions of euro debt and still has only one board member.