Press Header

Credit facility accelerated, insolvency procedures are imminent
Ad-Hoc News
September 18th, 2014
    • Nomura credit facility accelerated
    • Supervisory Board dismissed CEO and COO
    • Chin Kwong Clifford Chan remains CFO

    Cologne, 18 September 2014 — Cathay United Bank, Co., Ltd., exercising its function as facility agent, notified Ultrasonic AG yesterday evening that there were subsisting events of default as defined in the credit facility agreement between Ultrasonic and Nomura International (Hong Kong) Ltd. concluded on 8 August 2014. As a result of this, in accordance with a respective clause of the facility agreement, the USD 60 million credit facility together with interest of USD 180,236.89 unexpectedly was accelerated as of 17 September 2014, being immediately due and payable. However, the creditors agreed to enter into further negotiations with the CFO and the Supervisory Board of Ultrasonic AG in order to determine if potential insolvency procedures at Ultrasonic AG can be avoided. Moreover, CFO and Supervisory Board currently consult with its legal advisors to assess the exact legal implications of the claim.

    According to the latest information of the Supervisory Board, who dismissed Qingyong Wu and Minghong Wu from their posts in yesterday's Supervisory Board meeting, both former board members had drawn the credit facility in two tranches in August and transferred most of the money from Hong Kong to China shortly before their getaway.

    Within yesterday's Supervisory Board meeting, Chi Kwong Clifford Chan agreed to withdraw his resignation scheduled for 30 September 2014. For the time being, he will stay Chief Financial Officer of Ultrasonic AG and support the company to clarify the current situation. His designated successor, YEUNG Man Kin, who should have assumed the post from 1 October 2014, meanwhile rescinded his contract in the course of the most recent events.

    Prev Next Page: