Founder of online media taken to court for $380m

A company owned by online media HK01 founder Yu Pun-hoi is being sued by a bank for HK$378 million, alleged to be an outstanding sum it is owed.

In a writ filed to the High Court on Friday, CCB International is suing Yu, Pippen Ltd and Dadi International. Pippen, whose registered office is in the British Virgin Islands, is wholly owned by Yu.

The Hong Kong-based CCB says it bought bonds from Pippen in March 2017, with Dadi and Yu as guarantors.

The terms of the deal stated that Pippen had to pay HK$384 million to CCB by March 24 last year.

But by March this year it had paid only four sums. These were in June, July and September last year and in March this year.

CCB says it is seeking the remaining HK$378 million plus HK$37.7 million interest from the three respondents.

The bank is seeking interest on the outstanding maturity price of HK$378 million under the bond at the contractual default interest rate of 18 percent per annum - about HK$180,000 per day - from March 31 this year until judgment or earlier payment.

Yu is also chairman of Nan Hai Corp, which is reportedly facing financial difficulties.

Trading of Nan Hai's shares has been halted since April 1 as its full-year financial results were not be released as scheduled.

But Nan Hai warned in March it expected to lose HK$3 billion to HK$3.4 billion last year due to the flagging property sector and the continued recurrence of Covid in China.

Its subsidiary, Peninsula Shenzhen Property Development, which is engaged mainly in property development, last week sent staff a note saying projects had run into financial difficulties and it needed to suspend operations from June 1.

It has subsequently suspended operations.

The company also said in the note that a fifth phase of a project was being developed, but it was unable to push through with work on it due to unresolved issues with government departments, so it was impossible for it to continue to operate.

It also asked all the staff in Shenzhen to go on leave for six months from last Wednesday, with minimum wages based on laws and regulations.

Staff could be asked to take a longer leave if the subsidiary was still unable to operate normally after six months.

Another Chinese language news website under Nan Hai, Duowei News, announced its closure in April, ceasing all operations and laying off most of its staff.

The media outlet said it ceased operations due to an internal business realignment.

It thanked readers for their support.