Hong Kong – Redco Healthy Living Company Limited (Redco Healthy Living) reported that its ultimate parent, Redco Properties Group Limited, has been served with a statutory demand for approximately US$82.60 million. The demand, issued on 25 August 2026 by solicitors acting for lender China Billion International, requires repayment within 21 days and could trigger winding-up proceedings against Redco Properties if unmet.
The debt stems from a financing facility previously secured by pledging 150.00 million Redco Healthy Living shares (the “Charged Shares”) held by Redco Properties’ wholly-owned subsidiary, Top Glory International Holdings. Following enforcement action by appointed receivers, 48.00 million shares (24% of Redco Healthy Living’s issued capital) were sold on 2 July 2026, reducing Redco Properties’ interest—now held by the receivers—to 51% (102.00 million shares).
Key points highlighted by Redco Healthy Living’s board: • The company and its subsidiaries are not parties to the loan, security deed or statutory demand and have provided no guarantees or other credit support for the US$82.60 million debt. • The group operates with independent management, assets and banking arrangements, which remain unaffected to date. • Further enforcement—such as additional sales of the remaining Charged Shares or a winding-up petition against Redco Properties—could alter Redco Healthy Living’s controlling shareholder and trigger Takeovers Code implications, potentially affecting board composition and management. • Redco Properties and its affiliates are customers and connected counterparties; any financial deterioration at the parent level could pressure related-party revenues and necessitate additional impairment provisions.
The board is monitoring developments and will release further updates in accordance with Hong Kong Listing Rules. Shareholders and investors are urged to exercise caution when dealing in the company’s securities.
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