CCOOP Group subsidiary faces RMB 3.68bn lawsuit

CCOOP Group Co., Ltd. announced that its holding subsidiary, Shandong HNA Commercial Development Co., Ltd., has received a first-instance civil judgment from Hainan Province First Intermediate People's Court. The lawsuit, initiated by Western Trust Co., Ltd., concerns a mortgage contract where Shandong HNA Commercial provided property guarantees for related party debts. Western Trust is seeking confirmation of its creditor's rights amounting to CNY 3,677,985,344.98, including secured and unsecured claims, from the bankruptcy restructuring of Shandong HNA Commercial. The court ruled that Shandong HNA Commercial is liable for half of the CNY 3,677,985,344.98 debt owed by HNA Industry Group. CCOOP Group notes that it has already reserved resources for debt repayment, in accordance with its restructuring plan, and that the impact of this judgment on current and future profits remains uncertain pending further developments and accounting review.