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By Liu Yanfei and Liu Jiefei / May 21, 2019 07:29 PM / Business & Tech

Photo: VCG

Photo: VCG

Troubled Hong Kong-listed brokerage Freeman FinTech, which owes more than $100 million to a unit of China Construction Bank (CCB), has reached a preliminary agreement to raise HK$300 million ($38.2 million) by selling shares to an unnamed party as part of a plan to keep the company afloat, according to a filing to the Hong Kong Stock Exchange on Monday.

Freeman FinTech aims to raise at least HK$500 million from strategic investors and restructure its operations to help resolve a debt crisis that led Prosper Talent, a subsidiary of CCB International and a creditor of the company, to apply to the High Court in Hong Kong to have the firm wound up.

Freeman FinTech was notified of the winding up petition on May 10 and a hearing will be held on July 10, according to a May 14 statement. It said Prosper Talent claimed the company was insolvent and unable to pay its debts.

Prosper Talent had previously bought notes and convertible bonds from Freeman FinTech and filed its petition against the company for failure to repay a total of $111.6 million it claims it was owed. But Freeman FinTech also owes $154 million to affiliates of state-owned bad bank China Huarong.

Related: China’s Largest Online Brokerage Is Going Public
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