Two media veterans face legal action over unpaid loan linked to a Mandarin promotion business.
Singapore’s media veterans, Mr. Chua Chim Kang and Ms. Lee Kuan Fung, are being sued by businessman Ren Xin Wu for failing to repay a $990,000 interest-free loan given in 2017 to fund a Mandarin promotion venture, Homing Holdings. Ren, a Canadian national of Chinese origin, claims the loan was intended as working capital for the business.
Background of the Dispute
In August 2016, Ren was introduced to Mr. Chua, a former journalist and editor, and Ms. Lee, a former associate editor, to discuss a potential business venture. This led to the formation of Homing Holdings in June 2017, which was aimed at promoting Mandarin in Singapore. A loan agreement was signed on July 26, 2017, in which Ren gave $1 million, including a $990,000 interest-free loan.
The loan was due for repayment by July 2020, but no payment was made. Despite Mr. Chua’s assurance in August 2020 to mortgage his house for repayment, Ren filed legal demands later that year. A further dispute arose in 2020 when Homing entered into an agreement with consultancy firm Goldciti, which Ren alleges was a tactic to siphon funds.
Related Allegations Against Ms. Lee
In addition to the loan dispute, Ms. Lee is accused of breaching fiduciary duties by mismanaging the company and siphoning $40,000 through a questionable transaction with Goldciti. Ren’s legal team claims that the Goldciti transaction was fraudulent, while the defendants contend it was part of efforts to manage Homing’s finances under pressure.
Defendants’ Defense
The defense argues that Mr. Ren insisted on granting Mr. Chua a 35% stake in the company despite his reluctance to manage day-to-day operations. They also claim that the COVID-19 pandemic severely affected the company’s revenue, making it impossible to repay the loan. Furthermore, the defense disputes the legitimacy of the $40,000 paid to Goldciti, suggesting that it was an attempt to find professional financial solutions during the crisis.
