New Harvest, which holds 70% of the shares in Dasin Retail Trust’s trustee-manager, is disputing the termination of a shareholders’ agreement in 2021 by Zhang Zhencheng, a director and a shareholder of the trust.
The shareholders’ agreement, completed in July 2021, involved the transfer of shares from Zhang to New Harvest, which is owned by Sino-Ocean Capital. Sino-Ocean Capital is facing a winding-up petition in Hong Kong filed by Great Wall International Investment VIII, and a court hearing scheduled for June 7 had been postponed to August 16.
Zhang claimed that the winding-up petition filed against Sino Ocean Capital is a default event. However, New Harvest stated that the purported notice of termination by Zhang is based on an incorrect understanding of the termination provisions.
“In this regard, the board understands it is New Harvest’s position that the winding up petition filed against Sino Ocean Capital, without any application for the appointment of any administrator to Sino Ocean Capital, is not an event of default under the shareholders’ agreement,” Dasin Retail Trust said in a statement.
Zhang had given up his chairman role in Dasin at the time that Sino-Ocean bought control of the manager.