America 2030 Capital’s Stock Loan looks to take advantage of Sunpower Share Holders

America 2030 Capital looks to have illegally sold shares used to secure a stock loan, without dispersing funding for the loans. The owners of the shares, Guo Hongxin, and Ma Ming had to petition the Singapore courts to place a freeze on the custodial accounts of American 2030.

America 2030 Capital Charged Over Disappearance of SunPower Group Shares

SunPower Group board has refuted claims that two of its shareholders breached the company’s loan provisions on pledging their shares for personal loans. Amidst the defense, America 2030 Capital may have the case to answer over claims of unauthorized transfer of the company’s shares.

SunPower Shares Disappearance

The allegations stem from a transaction carried out by Mr. Guo Hongxin who is the chairman of the board and Mr. Ma Ming one of the directors. The two had signed an agreement with America 2030 Capital for the procurement of personal loans.

Reports indicate that the two executives went on to use 14 million of the company’s shares as collateral for the personal loan procured. The shares used as collateral accounted for 1.89% of the company’s total issued shares.

In a turn of events, it has emerged that America 2030 Capital never disbursed the personal loans even on entering into an agreement with the two executives. The issue appears to have gotten out of hand after the disappearance of the collateral shares from a designated depository brokerage account.

The big question that continues to rattle investors, the markets as well as regulators are what transpired leading to the disappearance of the shares. The Executive Chairman and the executive director who hold a substantial amount of the company’s shares have already lodged a claim with the Commercial Affairs Department.

America 2030 Sued

The disappearance of shares means America 2030 Capital has a case to answer given that the two executives used them as collateral. The shares were to be returned to the executives upon repayment of the procured loans. Given that the capital firm never disbursed the said personal loans then the shares ought to be returned to the rightful owners.

SunPower Group has sought to distance itself from the issue having also reiterated that the two executives did not violate any of the company’s loan provision requirements.

“The board wishes to reiterate to the shareholders that the group is not involved in any of the above matters and the business and operations of the group are not affected by the foregoing. The company remained fully operational and dedicated to executing the Green Investments growth strategy, which the board believes has the potential to improve shareholders’ value in the long term,” SunPower in a statement.

While the statement does relieve SunPower Group from any wrongdoing, the big question remains, did America 2030 Capital have a hand on the disappearance of the shares, from the designated account?  If so, did the capital firm violate any security laws on withdrawing the shares without following the necessary procedures?

According to the two executives, America 2030 Capital did have a hand on the disappearance of the shares. The two have already lodged legal proceedings against the capital firm in the country’s Supreme Court In their filings; they want the court to impose an injunction that would bar American 2030 Capital from selling or dealing in any way collateral shares in question.