On June 26, 2017, China Minsheng Banking Corp., Ltd. (“CMBC”) Chengdu Branch and Chengdu Techcent Environment Co., Ltd. (“Techcent Environment”) signed the Comprehensive Facility Contract whereby CMBC would grant Techcent Environment with a credit line of RMB 50 million. On the same day, CMBC signed the Maximum Amount Guarantee Contract with Deng Qinhua, Deng Xiang and Xu Tingting respectively whereby Deng Qinhua, Deng Xiang and Xu Tingting would provide the maximum amount guarantee for the Comprehensive Facility Contract and all of Techcent Environment's debts thereunder (including contingent liabilities). On June 30, 2017, CMBC and Techcent Environment signed the Working Capital Loan Contract whereby CMBC would provide a short-term loan of RMB 50 million to Techcent Environment. On the same day, CMBC granted RMB 50 million to Techcent Environment as agreed. When the loan was due, Techcent Environment failed to repay the loan and its interests as scheduled. CMBC therefore filed a lawsuit, claiming that Techcent Environment’s repayment of the loan and its interests.
As the attorney-at-law of CMBC Chengdu Branch, ZHH won this case in the first instance on March 1, 2019. Our claims were supported by Chengdu Intermediate People's Court. Given that other effective assets of the company and the guarantor were to be inquired and preserved, ZHH's lawyers found clues to Techcent Environment's property through active coordination and communication with the judges and by all other inquiry means, for decision reference to the client.
This project was led by Partners CHAI Jia and ZHAO Wenqi.