ING Sues Chinese Copper Trader Over $147 Million Debt
ING Groep NV, a Dutch financial services company, is suing a Chinese copper trader for failing to pay back a $147 million loan. The trader, Li Jun, is a legendary figure in the Chinese copper industry and is known for his ability to make large profits from trading copper.
Background of Li Jun
Li Jun is a Chinese copper trader who has been in the business for over 20 years. He is known for his ability to make large profits from trading copper and has become a legendary figure in the Chinese copper industry. He is the founder and chairman of the Beijing-based copper trading company, China International Mining Group Corporation (CIMGC).
ING’s Loan to Li Jun
In 2018, ING loaned Li Jun $147 million to finance his copper trading activities. The loan was secured by copper stockpiles held by CIMGC. The loan was due to be repaid in 2020, but Li Jun failed to make the payments. ING then took legal action against Li Jun in July 2023, seeking to recover the loan plus interest.
ING’s Legal Action
ING has filed a lawsuit against Li Jun in the High Court of Hong Kong. The lawsuit alleges that Li Jun has failed to repay the loan and is seeking to recover the full amount plus interest. ING is also seeking to seize the copper stockpiles held by CIMGC as security for the loan.
Li Jun’s Response
Li Jun has denied the allegations and has stated that he is not liable for the loan. He has argued that the loan was taken out by CIMGC and not by him personally. He has also argued that the copper stockpiles held by CIMGC are not owned by him and therefore cannot be seized by ING.
Implications of the Lawsuit
The lawsuit has significant implications for the Chinese copper industry. If ING is successful in its lawsuit, it could set a precedent for other creditors to pursue similar legal action against copper traders in China. This could lead to a decrease in the amount of copper trading activity in the country, as traders may be reluctant to take out loans if they fear that they may not be able to repay them.
Outlook
It is unclear how the lawsuit will play out, but it is likely to have a significant impact on the Chinese copper industry. If ING is successful in its lawsuit, it could set a precedent for other creditors to pursue similar legal action against copper traders in China. This could lead to a decrease in the amount of copper trading activity in the country, as traders may be reluctant to take out loans if they fear that they may not be able to repay them.