Ming Pao files suit against CIM
Media company Ming Pao Enterprises Corp says it has initiated legal action against CIM - the company controlled by its former chairman Yu Pun-hoi - and a mainland company over a defaulted $186 million loan.
'In an attempt to recover the sums due, [Ming Pao] has commenced legal proceedings against CIM . . . in the Court of First Instance action . . . on January 5,' Ming Pao said last night.
The publishers of Ming Pao Daily News said they had reached an understanding on November 21 last year with CIM and the unnamed mainland party whereby they promised to pay $10 million in interest payments and arrange for settlement of the balance within 30 days.
But CIM and the mainland company failed to come up with the money, they said.
Ming Pao made an unsecured $185.79 million loan to the mainland company, guaranteed by CIM, in April, 1994.
Ming Pao said the loan carried an interest rate of 1 per cent per annum, and was to have been repaid within 18 months from the date of the drawings or within two weeks of written request.
The loan now carries unpaid interest of about $60 million.