Shandong Chenming seeks guarantees for Rmb2.31bn production funding

Shandong Chenming Paper Holdings Limited announced proposed guarantees for syndicated loans totaling Rmb2.31bn for Weifang Xingchen, a state-owned company facilitating the resumption of work and production at Chenming's main manufacturing base. Shouguang Kunhe, a subsidiary, will provide a mortgage guarantee for up to Rmb206.3541m, and Chenming Leasing, another subsidiary, for up to Rmb23.345m, both with a term not exceeding five years.

Additionally, to support its Jilin base, Chenming proposes a joint and several liability guarantee for Jilin Xingchen, a wholly-owned subsidiary of Weifang Xingchen, for a loan from the Bank of Jilin. Jilin Chenming, a subsidiary, will provide a mortgage guarantee for Jilin Xingchen up to Rmb240m, also for a term not exceeding five years. All mortgaged assets are unencumbered and free from disputes.

As of the announcement date, the Group's aggregate external guarantees amounted to Rmb20,291m, representing 221.61% of its latest audited net assets. Overdue guarantees totaled Rmb2,092m, with Rmb1,636m involved in litigations. The proposed guarantees are subject to approval at a general meeting and may or may not materialize.