Things are getting uglier for Beauty China

Beauty China – Things are getting uglier for Beauty China, with the group now facing a winding-up petition by its creditors at the High Court in Hong Kong. A winding-up petition filed on June 18 alleged that Beauty China was indebted to and had failed to pay the petitioners a sum of HK$133.36 million (S$25 million) as at June 1. The petitioners are Industrial and Commercial Bank of China (Asia), Banco Weng Hang SA, CIMB Bank Berhad Hong Kong Branch, MCL Global Portfolios SPC Ltd - MCL Focus Opportunities Segregated Portfolio Fund and Public Bank (Hong Kong) Ltd. Beauty China said it became aware of the filing only yesterday. The petition is to be heard on Aug 26. A statutory demand from these syndicated lenders was first issued in March, demanding repayment by March 27. This was followed by a 'standstill' till April 27 to allow negotiations between Beauty China and potential investors, due diligence or conclusion of any transaction to proceed. This loan default has cast uncertainty over Beauty China's ability to continue as a going concern.

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