HK01 founder sued over $379mn debt

Media mogul Yu Pun-hoi, who owns the local media company HK01, is being sued over more than HK$379 million in debts plus interest by CCB International.

This came after Nan Hai Corporation, which is controlled by Yu, ran into financial difficulties earlier and the property arm of Nan Hai Corp needed to suspend operations.

CCB International on Friday filed a lawsuit to the High Court, alleging that Pippen Limited, which was indirectly wholly-owned by Yu, failed to pay the yield of HK$384 million by the maturity of bonds purchased from it. It was accused to have only repaid a total of HK$37.2 million in installments.

CCB then sued Pippen Limited, bond guarantor Dadi Holdings Limited and Yu to recover the remaining debt of approximately HK$378.87 million and interest thereon.

The writ read that CCB purchased Pippen Limited bonds in 2017, with Dadi Holdings Limited and Yu as guarantors.

The terms of the bonds required Pippen Limited to pay CCB a yield of HK$384 million on March 24 last year, which Pippen Limited failed to comply with by then.