Chenzhou Jingui Silver shares frozen amidst debt dispute

Chenzhou Jingui Silver Industry (SZSE:002716) announced that some of its bank accounts have been frozen by the Changsha Intermediate People's Court. The freeze involves two accounts at Bank of Communications and Industrial Bank, with a total of CNY 34,386,308.52 frozen. The action stems from a dispute with Hunan Trust & Investment, despite the company having undergone debt restructuring in 2021 relating to loan agreements totaling CNY 180 million with collateral provided by guarantor Cao Yongde. While the company claims the restructuring should have resolved the debt, Hunan Trust continues to pursue claims against Cao Yongde, leading to the asset freeze. Chenzhou Jingui Silver Industry is pursuing legal avenues to protect its interests and claims business operations remain normal and that the current freeze will not impact their current profits.