Often Partisan

BIH To Be Sued Over Non-Payment Of Loans

News has emerged from Hong Kong that legal proceedings are to be instigated against Birmingham International Holdings Ltd over non-payment of loans made to the company.

In an announcement to the HKSE, China Water Industry Group have stated that they are to take legal action to recover HK$43,180,721 (approx £3.5mil) in unpaid loans from BIH. The loans are between seven and twelve months overdue in payment and due to the continued uncertainty surrounding BIH China Water feel that they have no other option than to pursue the matter via the courts.

The issue is complicated as iMerchants (the subsidiary of CWIG who lent BIH the money) have two executive directors (including their chairman) who are independent non-executive directors of BIHL in Carson Wong and Raymond Yau.

Furthermore, last October iMerchants were forced to look into similar proceedings for money lent to another of Carson Yeung’s companies, the newspaper Sing Pao.

China Water Industry Group’s connections with Carson Yeung and former BIH Chief Executive Vico Hui have been in the news before, with the Market Misconduct Tribunal finding against a former CWIG executive director in an inquiry into insider trading which involved money lent by Vico Hui that was said by the tribunal to have “the hallmarks of money laundering”.

This is a tangled web and even to someone who has been following things closely, it’s confusing. However what stands out to me is the pure, bald fact that BIH are struggling to pay off their debts – loans which seem to have been lent to Carson on the basis of him being “connected” in the People’s Republic of China. Couple this with the continued delay to the accounts from BIH and in my opinion at least you have a company that is swiftly unravelling.

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25 Responses to “BIH To Be Sued Over Non-Payment Of Loans”

  • Griff says:

    It makes you wonder what mess BCFC would be if Pannu wasn’t on-board.

  • Oldbluenose says:

    almajir mate;, Can this possibly impinge on B,C,F,C. if the courts find against B,I,H. ?.

  • Coleshill-Blue says:

    What, if any, implications does this have on BCFC Mayor?

    • almajir says:

      In answer to you and Oldbluenose – the truth is I don’t know. I can’t see it hitting the courts any time soon but it’s a mess, plain and simple. The only thing I think it might do is loosen Carson’s grip on BCFC some more.

      • Oldbluenose says:

        Whilst, I have no personal animosity towards Carson Yueng, I DO wish that we could become dis-entangled from all of the Chinese control, !!.

  • Mickey07 says:

    The best thing for this chancer is to get his scissors out of retirement and start cutting hair again….someone put this idiot down and out of his misery.

    • Hugo says:

      I agree what a mess these idiots have left us in. Perhaps PP is the ONLY good thing to come out of this Chinese ownership farce

  • Paulo says:

    Blimey ..! BIHL being sued by two of their own non-exec directors who are both exec directors of a company that borrowed Carson a bit of cash. You couldn’t make it up. It does seem like loyalty once played a big part in BIHL, and now the company seems to be imploding at a rate that can only be alarming to us.
    Either way, I doubt BIHL are ever going to publish any accounts, and now CY’s major court case begins in 3 months, as well as his mortage problems, and now BIHL ae going to be sued …well, they are going to have to sell up and fold pretty soon. I can’t believe this is getting any worse than it has been.

  • prewarblue says:

    OH what a tangled web they weave
    When practising to decieve

  • Blueboy88 says:

    BIHL is becoming an increasingly untenable company , seriously overdue accounts , CY’s Money Laundering Court Case Pending , Debtors now coming out of the woodwork , & their only tangible asset being BCFC.

    Which all seemingly brings forward the prospect of the club being sold , hopefully sooner rather than later..

  • Blueboy88 says:

    BIHL is becoming an increasingly untenable company , seriously overdue accounts , CY’s Money Laundering Court Case Pending , Debtors now coming out of the woodwork , & their only tangible asset being BCFC.

    Which all seemingly brings forward the prospect of the club being sold , hopefully sooner rather than later..

  • DoctorD says:

    But surely if BCFC is BIHL’s only tangible asset, then isn’t that worrying for us?

    Mind you if you read the link almajir gave

    http://www.hkexnews.hk/listedco/listconews/sehk/2012/0803/LTN20120803951.pdf

    it seems impossibly complicated.

    • Oldbluenose says:

      DoctorD;, So glad that you pointed out almarjir’s link, !!. Having read it with utter concentration, ?. I can now sleep easily, ?. Knowing that I am none the wiser, !!.

      Though I am a non-Catholic, I will say a few Hail Mary’s, Hoping that ONE DAY, we may come out of this nightmare, !!!!!!!!!.

      • Blueboy88 says:

        What is complicated is £21.5 million of BCFC debt is owed to CY & BIHL jointly ,
        which potentially could be called in at anytime…

        • Oldbluenose says:

          Blueboy88;, I was just trying to make a humerous ” lighthearted ” response, mate, !!.

          The biggest worry for me, is that this sorry state of affairs, is totally out of our control, !!.

          I genuinely shudder to think too deeply about the ” Interchange ” between people in H,K. who care not a jot, for B,C,F,C., — But will think nothing of disposing of us to anyone, Possibly even the Triads,??.

  • skareggae72 says:

    It sounds crazy that the Chinese Water Industry are doing loans (i’m guessing its state owned),what next Seven Trent loaning BIH 20million.What a mess.

  • Dorsetblue says:

    Carson will drag blues down with him to the bottom before we are free.

  • pedantic pete says:

    Any chance CWI leant dirty money to BIH in order to launder it? What could be cleaner that money ordered to be returned by a Chinese court?

  • Mark Y says:

    Bearing in mind the mess that BIHL is in and that it is owed money by BCFC I have been surprised and pleased with the relatively low impact on Blues finances so during the close season, but, I am still in fear of a BIHL implosion which leads to a firesale of Blues major assets. Theres still a long way to go to 31st August and the Jordan Mutch transfer came from nowwhere. The owners even though BIHL is in desperate trouble seem to be trying to at least ring fence BCFC from BIHL and maintain the possibility of a promotion. I wonder what impact court action will have and whether it will lead to liquidation of BIHL or whether monies will need to be extracted fom BCFC to avoid this eventuality. Also I would like to know how long it will be before BIHL is automatically de-listed by the Hong Kong stock exchange with all of the current problems and what impact that could have. I’m sure CY will want both companies to maintain an even keel much as possible until his trial ends in the hope he avoid a prison sentance and then resurrect the situation, but, how much control over eevents that he has is difficult to fathom.

    • KeeprightCroydON says:

      I think BCFC is ok – for the timebeing at least. We do owe CY, BIHL and others about £21m, but should have quite a substantial part of that in the bank because of all the player sales. Note we are heading for a substantial working profit in 2011/12 season as indicated by PP a few weeks ago.
      The following is only a hypothesis, as I do not have facts and am no expert.
      My guess is that at some point all our Chinese creditors will call in their loans (or the Chinese courts may order it to pay off fines if CY is found guilty). At this point the umbilical cord to BIHL will be severed. We would still be a going concern with very low debts, and will be ripe for a takeover. The big question then will be: Who will be the knight in shining armour?

  • jazzzy786 says:

    My worry is that we are forced to sell players for quick money by BIHL. The present squad is good enough to be challenging for promotion this year but if we’re forced to sell the likes of Davies or Burke we’ll struggle to compete. If the worst comes to the worst I’d rather we sold Butland for £10M than the others. Although it would be a bitter pill to swallow I think it would have a lesser impact on the team.

    • nicky wicky says:

      jazz when will you learn. you never sell your young gems on the cheap unless you can get a player of equal or better ability for less money like they did with mutch. they got £3 million then bought Ambrose for £1 million. playerd like butland,redmond,etc are the future of the club!

  • KeeprightCroydON says:

    Another impressive performance this afternoon. Lovenkrands and Redmond had theur shooting boots on. Here’s hoping thar the goals keep coming once the season gets under way. I’m feeling quite optomistic. Loven and King seem to be forming a good partnership and Redmond and Burke also looking good with Mullins and Ambrose settling in well.

  • […] you may know already from reading this blog, there was an announcement made to the HKSE on Friday stating that a company called China Water Industry Group were to […]

  • jazzzy786 says:

    Nicky read my post again. I said I’d rather we sold Butland for £10 than sell Burke, Davies etc. Doyle and Lucas could do the goalkeeping job but losing the others would have a more serious impact on the team. Since when is £10m cheap?


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