Huiyuan Juice facing internal crisis

China’s largest private juice processor, Huiyuan Juice is facing a major internal crisis as its founder and his daughter have both resigned from their board positions, after the company reported huge debt obligations.
Its founder Zhu Xinli has stepped down as Chairman and Executive Director while his daughter, Zhu Shengqin, has also resigned as Executive Director.
According to several reports, neither Mr Zhu nor any other board members had been aware of the circumstances concerning a suspect loan amounting to Rmb 4.2 billion (US$601 million) extended to its unit, Huiyuan Beijing Holdings back in 2017 which the Hong Kong stock exchange is currently investigating. As of June 2017, Huiyuan had an enormous accumulated debt exceeding Rmb 51 billion (US$1.6 billion).
Zhu Xinli’s departure might clear the way for an injection of cash, said an analyst. The company still has a bright future and it needs money to resolve its debt crisis.