China Merchants Bank sues HK01 founder for HK$400m debt

China Merchants Bank is suing a company owned by local online media outlet HK01's founder Yu Pun Hoi for more than HK$400m in unpaid debt. According to a writ filed to the High Court on 6 July 2022, China Merchants Bank is suing three parties including Yu himself, Nan Hai Corporation, and True Vision. The writ detailed that China Merchants Bank and its Shenzhen branch signed a loan agreement with True Vision, a subsidiary of Nai Hai Corporation in February 2018, and loaned out around HK$1.17 billion to True Vision.

True Vision also acted as the mortgagor of the loan and took 100% shares of Orange Sky Golden Harvest Entertainment Company as collateral for the loan. Meanwhile, Yu and Nan Hai Corporation were the guarantors of the loan to  ensure that True Vision can pay the loan.   However, the document stated that True Vision did not repay the payment on the due date in February this year, which constituted a breach of contract. The bank requested the defendant to repay the payment in April this year but to no avail.

The bank is now suing the arrears, interest and fees from True Vision, totaling more than US$53.4m (around HK$419m), and also seeks a court order to enable its right to exercise the mortgage.

According to the writ, as of 13 June 2022, True Vision still owed US$50.8 million, including US$1.661m in fees and US$940,000 in interest. The bank now requires the defendant to repay the money, and the shares of Orange Sky Golden Harvest Entertainment Company will be used as collateral.

A quick search by MARKETING-INTERACTIVE has seen that True Vision doesn't have an official website or provide any contact details. MARKETING-INTERACTIVE has reached out to Orange Sky Golden Harvest Entertainment Company for a statement. 

Back in December in 2019, Google was sued by digital media advertising company Inform for its anti-competitive practices, that has allegedly thwarted competition on the merits and excluded Inform and other Google competitors from the relevant markets. According to a lawsuit document seen by Marketing, the result of Google’s “unlawful conduct” has “eviscerated competition” in multiple markets, harmed consumers, degraded consumer choice and consumer privacy, and stifled innovation.

Inform, for over a decade, directly competed with Google in the online advertising market, specifically online video advertising. The company provides a platform of services to online publishers, content creators, and online advertisers. While Inform had revenues in excess of US$100 million for its online advertising services between 2014 and 2016, Google was accused by the company of putting Inform out of business as a direct result of “its illegal conduct” of anti-competitive practices.

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