Cosmetics retailer Rainbow International Holdings has revealed it has received writs and claims from creditors demanding over due repayments amounting to about HK$5.36 million. Shares of the Growth Enterprise Market-listed company have been suspended from trading since August 7. Troubled Rainbow has issued an announcement saying it had received seven writs, 16 claims under the Small Claims Tribunal and two claims under the Labour Tribunal since it was listed on the GEM in September last year. Of the 18 claims, there were six judgments against Rainbow subsidiaries. But Rainbow said these subsidiaries had ceased business operations and would be unable to settle outstanding liabilities. The group said debt restructuring negotiations were under way but warned that the subsidiaries might have to be liquidated if talks broke down. In its announcement, Rainbow said four of the writs and one claim were related to outstanding rental, rates and management fees in an aggregate amount of HK$3.05 million linked to the company's retail outlets in Central, Mong Kok and Causeway Bay. Of the other writs, one had been filed by Banco Delta Asia in Macau in relation to a commercial loan and bank overdraft and involved a claim of about HK$1.21 million.