RENCO HOLDINGS (02323) will be unable to repay the outstanding amount specified in the statutory demand letter.

RENCO HOLDINGS (02323) announced that on March 26, 2025, the company received a statutory demand letter from Tian Yuan legal representatives, requesting the company to pay approximately HK$1.081 billion within three weeks of the delivery of the statutory demand letter in accordance with the 2019 loan agreement and 2019 guarantee, including (i) outstanding principal amount of HK$660 million; (ii) interest accruing from December 9, 2019 to December 9, 2022 of approximately HK$159 million; and (iii) default interest accruing from June 19, 2020 to the date of the statutory demand letter of approximately HK$262 million, otherwise winding-up proceedings may be initiated against the company. The directors believe that the company will be unable to repay the outstanding amounts as stipulated in the statutory demand letter. The company is currently assessing the impact of the statutory demand letter on the group and seeking professional advice on possible actions to take in response to the statutory demand letter, including but not limited to legal and financial advice. The group will explore possibilities with Tian Yuan for extending the repayment date and other feasible options.