Wison Unit Asked for Loan Repayment from Agricultural Bank
Wison Engineering Services Co., formerly the largest supplier to PetroChina Co. (857), said a Chinese state bank asked one of its units to repay loans representing about 10 percent of total borrowings.
Agricultural Bank of China Ltd., the nation’s third-biggest by market value, requested Winson Engineering Ltd. repay 186 million yuan ($30.4 million) and interest, according to a filing today to the Hong Kong stock exchange. Repayments on all the group’s borrowings are up to date, the company said.
Wison’s shares have been suspended since Sept. 2 and the company and its chairman and founder Hua Bangsong are assisting authorities in unspecified investigations. China is investigating PetroChina’s former Chairman Jiang Jiemin and four senior executives for graft. The nation’s largest oil producer was Wison’s biggest customer before 2012.
Wison ’’has not breached any term of the relevant borrowing agreements relation to the ABC loans,’’ it said in the statement. “The two parties are currently engaged in dialogue, seeking a mutually-acceptable solution.”
Regulators questioned Wison about “certain projects,” took records and froze bank accounts, the company said on Sept. 19. Wison said on Sept. 3 that chairman Hua was helping in unspecified investigations, and the company’s business operated as normal.
PetroChina shares fell 4.4 percent in Hong Kong, the most in two years, on August 28, after the four senior managers were removed. Former chairman Jiang was dismissed from his post as head of the state assets regulator and is under investigation, the official Xinhua News Agency said Sept. 2.
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