MAINBOARD-LISTED logistics player Vibrant Group : BIP 0%, through its subsidiaries, has filed 137.4 million yuan (S$26.8 million) in legal claims against Vibrant Pucheng Logistics (Chongqing), the group’s 31 per cent-owned Chinese associated company.

Vibrant Pucheng had failed to make repayments to three of the group’s subsidiaries upon demand, the group said on Wednesday (Jan 18). These subsidiaries are Vibrant Development (Changshu), New Vibrant (Jiangsu) Supply Chain Management, and Sinolink Financial Leasing.

New Vibrant Jiangsu, which is wholly owned by the group, had granted 177.6 million yuan in loans to Vibrant Pucheng via two 2020 loan agreements. It later assigned all its rights to receivables for 20 million yuan of said loan to Vibrant Development, effective Jan 1, 2021.

As a result of the assigned agreement, Vibrant Pucheng now owes New Vibrant Jiangsu a principal amount of 96.5 million yuan, and interest amounting to 4.3 million yuan. 

Vibrant Development, which is 60 per cent-owned by the group, is now claiming 21.9 million yuan against Vibrant Pucheng, after the latter failed to make repayment upon demand. The amount comprises a principal loan amount of 20 million yuan and 1.9 million yuan in interest, calculated at the rate of 6 per cent per annum up to Jan 10, 2023.

Separately, New Vibrant Jiangsu is claiming 110.1 million yuan against Vibrant Pucheng. The amount comprises a principal loan amount of 96.5 million yuan, and interest amounting to 13.7 million yuan. Vibrant Pucheng had failed to make repayment in accordance with the loan agreements and the assignment agreements.

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Meanwhile, Sinolink Financial, the group’s 51 per cent-owned subsidiary, is claiming 5.3 million yuan against Vibrant Pucheng failing repayment. The amount comprises the principal loan amount of five million yuan, and interest amounting to 324,166.66 yuan. 

There may be a material impact on Vibrant Group’s financial performance for the current financial year ending Apr 30, 2023 if it does not succeed in the claims or fail to fully recover the amounts owed. The group, however, is currently unable to quantify any financial impact.  

Shares of Vibrant Group closed unmoved at S$0.078 on Tuesday.