Real Gold Mining Says Unit Made ‘Irregular’ Loan Pledges
Real Gold Mining Ltd. (246), suspended from Hong Kong trading for two years after a report it filed two sets of accounts, said its Rich Vision Holdings Ltd. unit made 18 “irregular” pledges of bank deposits to back loans.
The former sole director of Rich Vision had the unit pledge as much as HK$317.3 million ($40.9 million) to Ping An Bank Co. as security for borrowing by Huizhou Qiaoxing Telecom Industry Co. in 2012 and 2013 without informing Real Gold’s board, according to a filing to the Hong Kong Stock Exchange yesterday.
Real Gold discovered the pledges in March and hired JunZeJun Law Offices to investigate the companies involved and determine if the actions were legal. All the pledges have since been released, according to the statement. Real Gold said it appointed new directors to Rich Vision and removed the former sole director.
The company’s shares will remain suspended from trading until further notice, according to the statement.
Real Gold halted trading on May 27, 2011, after Hong Kong’s South China Morning Post newspaper said the company may have filed two different sets of accounts. Real Gold is required to conduct an independent forensic-accounting investigation and publish all outstanding earnings before it can resume trading, the Hong Kong stock exchange said in a letter to the company in March 2012.
In March this year, Real Gold said in a Hong Kong exchange statement that 2012 earnings will be delayed until further notice pending the conclusion of forensic accounting investigation by FTI Consulting Hong Kong Ltd. Last month, the company said FTI expects the probe to be finished by Sept. 30. .
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