Chiho Environmental Group Limited (Chiho Environmental) has initiated legal proceedings to contest the validity of receivers installed over key subsidiaries following a payment default on a syndicated term loan of up to US$300.00 million.
On 7 July 2026, Chiho Environmental lodged a writ with the High Court of Hong Kong against the joint and several receivers appointed by FTI Consulting and against subsidiaries currently under their control—Chiho Renewable Investment Holding (CRIH), Chiho Renewable Development (CRD) and Chiho Trading & Resources Limited (CTRL). The company seeks:
1) A declaration that the receivers’ appointment over the entire issued share capital of CRIH, CRD and CTRL is invalid and void. 2) A declaration that all actions taken by the receivers in their purported capacities as receivers, managers or directors of the above entities are invalid and void. 3) An injunction restraining the receivers from acting, representing or exercising any powers under the relevant facility agreement, share charges or other finance documents.
Background • The disputed receivership stems from a syndicated term loan facility of up to US$300.00 million entered into on 5 July 2018. • Chiho Environmental announced a payment default on this facility on 3 April 2024. • On 14 May 2025, FTI Consulting notified the group of the receivers’ appointment; Chiho Environmental immediately disputed its validity. • Subsequent announcements on 20 May 2025 and 5 June 2025 detailed the receivers’ control over certain subsidiaries and their intention to dispose of the Scholz Group. • The company’s negotiations with FTI Consulting and the creditor to settle outstanding debt have not succeeded.
Trading status Trading in Chiho Environmental’s shares has been suspended since 09:00 on 1 April 2025 and will remain halted pending fulfilment of Stock Exchange resumption guidance. The board pledges further disclosures in line with Hong Kong Listing Rules.
Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.