Wire flash
CTS Logistics Faces $177M Counterclaim Over Unit's Performance
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Huamao Logistics Co., Ltd. announced that it has received a civil counterclaim from internal sellers related to a previous lawsuit. The company had originally sued the sellers for failing to meet performance targets for Jiacheng Logistics in 2021 and 2022. In response, the internal sellers are now demanding that Huamao pay the outstanding balance of the equity transfer price plus overdue interest, totaling 177 million yuan (approximately $24.5 million). They also request that Huamao cooperate in lifting the share pledge registration and confirm that Song Cheng and Yin Qi are not subject to non-compete obligations. The case has been filed with the Hangzhou Intermediate People's Court, but the first-instance trial has not yet begun. The outcome of this legal dispute could have financial implications for Huamao Logistics, depending on the court's eventual ruling.
Source report
CTS International Logistics Corporation Limited (华贸物流) has issued a public announcement regarding an ongoing legal dispute involving its subsidiary, Jiacheng Logistics (佳成物流).
Background
The company had previously filed a lawsuit against internal sellers due to Jiacheng Logistics' failure to meet its performance commitments for the fiscal years 2021 and 2022.
Latest Development
The company recently received a Civil Counterclaim (民事反诉状) served by the Hangzhou Intermediate People's Court. In the counterclaim, the internal sellers are requesting the following:
- Payment of the outstanding balance for the equity transfer, plus accrued interest for overdue payment, totaling RMB 177 million
- Release of the equity pledge registration
- Confirmation that Song Cheng (宋成) and Yin Qi (殷琦) are not subject to non-compete obligations
Current Status
The first-instance trial of this case has not yet commenced.
Source
证券之星-股市直击Eastern
Part of this Story
Huamao Logistics Faces $177M Counterclaim Over Unpaid Share Transfer, Court Hearing Pending