Vicki Zhao And Her Husband Sued (Again) Over Guarantee Dispute
Vicki's bad year just got worse.
The couple, along with the chairman of Giant Network Group, Shi Yuzhu, were recently sued by Chinese trust and investment management company, China Minsheng Trust, over a guarantee dispute.
A guarantee is a contract in which a guarantor and creditor agree that when the debtor fails to perform the debt, the guarantor shall perform the debt or assume the responsibility in accordance with the agreement.
The hearing is expected to take place in a Beijing court on November 8.
According to Minsheng Trust’s website, the company, formerly known as China Tourism International Trust Investment, has a registered capital of 7bil yuan (S$1.47bil).
Its controlling shareholder is Wuhan Central Business District, which engages in the development, construction, operations and property management of urban areas.
Vicki was sued by Minsheng Trust earlier this year
This is not the first time Vicki, 45, is being sued by Minsheng Trust
According to National Business Daily, Minsheng Trust sued Vicki and Hebao Entertainment Group over a guarantee contract dispute in June.
Public documents show that Vicki holds 4.15 per cent stake in Hebao Entertainment, and 5mil yuan (S$1.05mil) of her shares have been frozen.
This is just the tip of the iceberg for Vicki and her husband's financial and legal troubles.
According to the report, equity of five of the seven companies under Vicki's name were frozen in April this year, and Youlong, 44, is also embroiled with many debt disputes.
Vicki and Youlong
Vicki and Youlong tied the knot in 2008 and went on to become one of the richest and most powerful couples in China thanks to their various business ventures and investments.
In 2014, they reportedly paid HK$3.1bil (S$536mil) for a 9.18 per cent stake in Alibaba Pictures Group, becoming the company's second-largest shareholder.
They were said to have made over HK$2.2bil (S$380mil) by selling a small portion of their shares.
In December 2016, Vicki and Youlong's company Longwei Culture & Media made a failed attempt to buy a 29.1 percent stake in Zhejiang Wanjia, which was later taken over by another investor and renamed Zhejiang Sunriver Culture.
The Shanghai Stock Exchange later banned the couple from acting as listed company executives for five years due to issues and irregularities related to the failed takeover bid.
Vicki has kept a low profile since she was cancelled in August
In August this year, news of Vicki getting blacklisted by the Chinese government made headlines.
Her name and dramas were removed from Chinese websites, and any mention of her on social media has also been censored.
Though no official reason was given for the blacklist, netizens think it could be due to either Vicki and her husband’s business dealings and legal woes or a photo of the star donning a dress with a Rising Sun flag design on a shoot in 2001.
There was also speculation that it’s “related to her close ties with Alibaba’s Jack Ma”.
Photos: Vicki Zhao/Instagram, PBE Media
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