ZHH wins a favorable first instance judgement for CMBC Chengdu Branch in financial loan disputes with SCIHC before Chengdu Intermediate People's Court

Date:2019/07/02 Views:1205

On December 22, 2014, China Minsheng Banking Corp., Ltd. (“CMBC”) Chengdu Branch and Sichuan Chemical Industry Holding (Group) Co., Ltd. (“SCIHC”) signed the Comprehensive Facility Contract (“the Facility Contract”) whereby CMBC would provide SCIHC with the highest credit limit of RMB 200,000,000.00. On the same day, CMBC and SCIHC signed the Working Capital Loan Contract. Later, SCIHC signed a series of loan contracts and supplementary agreements to repay old debts with new debts for three times consecutively. After the final loan expired, SCIHC failed to repay the loan and its interests. CMBC filed a lawsuit, claiming SCIHC’s repayment of the loan and interests generated by the three previous loans.

 

As the attorney-at-law of CMBC Chengdu Branch, ZHH won the first instance in this case on November 27, 2018. Our claims were supported by Chengdu Intermediate People's Court. Given the repayment of old debts with new debts for times, ZHH provided a clear and in-depth analysis of the overdue time, overdue amount, overdue interests, penalty interests, compound interests, etc. agreed under all contract documents. It helped to preserve SCIHC's large business by coordinating and communicating with the judges, providing effective protection for subsequent execution.

 

This project was led by Partners CHAI Jia and ZHAO Wenqi.