RiseSun faces 58m yuan lawsuit, 1.4bn yuan debts

RiseSun Real Estate Development faces a lawsuit from Cangzhou Bank's Handan branch over an unpaid 57.8 million yuan loan, with the parent company guaranteeing repayment of principal, interest and expenses.

The property developer and subsidiaries have accumulated 1.434 billion yuan in new overdue debts due to market conditions and cash constraints. The outstanding debts represent 9.65% of the company's most recent audited net assets.

RiseSun is negotiating debt extensions with financial institutions.