The case involving 2.58 billion yuan Baoneng Group was sued by Bank of Shanghai

On the evening of October 13, Bank of Shanghai announced that Shenzhen Branch of the Company (hereinafter referred to as "Shenzhen Branch") had lent 2.58 billion yuan to Shenzhen Torgis Technology Co., Ltd. (hereinafter referred to as "Shenzhen Torgis") according to the agreement. Since Shenzhen Torgis failed to fulfill its obligation of repayment of principal and interest in accordance with the contract, Shenzhen Branch announced to recover the principal and interest of the loan in advance in accordance with the contract, and required Torgis and others to go through the procedures of repayment of principal and interest. In view of the fact that Shenzhen Torgis and others have not yet fulfilled their obligations of repaying the principal and interest or undertaking the guarantee liability, Shenzhen Branch has filed a lawsuit to Shenzhen Intermediate People's Court of Guangdong Province according to law.

The announcement shows that there are also five guarantors involved in this financial loan contract dispute, including Shenzhen Shenye Logistics Group Co., Ltd. (hereinafter referred to as "Shenye Logistics"), Torgis Group Co., Ltd. (hereinafter referred to as "Torgis Group"), Shenzhen Baoneng Investment Group Co., Ltd. (hereinafter referred to as "Baoneng Group"), Baoneng Holdings (China) Co., Ltd. and Yao Zhenhua. At present, the lawsuit has been filed but not heard.

Bank of Shanghai said in the announcement: "The company has withdrawn the corresponding loan loss reserves for this loan. This lawsuit has not yet been heard, and it is expected that this lawsuit will not have a significant impact on the company's current profits or future profits."

Lu Ruozheng, a lawyer from Beijing Huicheng Law Firm, told the reporter that financial institutions, when issuing loans as creditors, often require borrowers to provide guarantees of the highest quality and quantity possible to meet legal and regulatory requirements and maximize the recovery of their creditor's rights. In this dispute, it is very common in practice that five defendants, including Shenye Logistics, Torgis Group and Baoneng Group, provide mixed guarantees. When the debtor fails to repay on time, this arrangement of multiple guarantors and multiple guarantee modes often generates huge disputes due to the performance of the guarantee responsibility.

In fact, this lawsuit can be traced back to December 24, 2020. At that time, Shenzhen Branch and Shenzhen Torgis signed the Fixed Assets Loan Contract, which agreed that Shenzhen Torgis would borrow RMB 2.58 billion from Shenzhen Branch for a period from December 24, 2020 to December 24, 2023.

At the same time, five defendants, including Shenye Logistics, Torgis Group and Baoneng Group, undertook joint liability guarantee for the above debts. Among them, Shenzhen Branch signed the Real Estate Mortgage Contract with Shenye Logistics, the Loan Pledge Contract with Torgis Group, and the Loan Guarantee Contract with five defendants respectively.

According to the data, Shenzhen Torgis was founded in 2017. Torgis Group holds 100% of its equity and is indirectly wholly-owned by Shenzhen Jiekai Industrial Co., Ltd., which is engaged in real estate development and operation, computer software, network information system technology services, etc.

In addition to requesting judgment that Shenzhen Torgis should pay off the principal and interest of the loan, and the five guarantors should bear joint and several liability for payment, Bank of Shanghai also requested judgment that Shenzhen Torgis should have the mortgage right on the real estate mortgaged by Shenzhen Industry Logistics, and pledge 100% of the shares of Shenzhen Torgis held by Torgis Group, and pay off the relevant loans through legal disposal.

Lu Ruozheng said that China's laws give creditors the right to choose, and Shenzhen Branch of Bank of Shanghai can choose the way that is most conducive to the realization of creditor's rights based on its judgment of the performance ability of each guarantor. After Shenye Logistics and other guarantors provide guarantee, they have the right to claim compensation from Shenzhen Torgis, the debtor.

key word: Shenzhen Bank of Shanghai group branch