On June 16, Guangdong Amethyst Information Storage Technology Co. Ltd. (*ST Amethyst) issued an announcement to file a lawsuit against a bank at the Intermediate People’s Court of Sanmenxia City, Henan Province. The lawsuit is about a dispute over the savings deposit contract between the company and Henan Lushi Rural Commercial Bank Co. Ltd.

According to the announcement, from April 2021 to February 2022, *ST Amethyst deposited 85 million yuan (about 13 million dollars) as a fixed deposit in Lushi Agricultural and Commercial Bank.

On March 20, 2022, the bank allegedly deducted a total of 76 million yuan (about 11 million dollars) from the above-mentioned termed deposit account. On March 28, 2022, the bank allegedly deducted a further 23 million yuan (about 4 million dollars) of *ST Amethyst’s current deposit account. Both times the deductions were without reason.

ST Amethyst has repeatedly requested Lushi Agricultural and Commercial Bank to return and cooperate, but the bank has refused to do so.

*ST Amethyst demanded the bank to return a provisional amount of 108 million yuan (about 16 million dollars) and bear the legal costs.

ST Amethyst is located in Meixian County, Guangdong. However, they deposit a huge sum of money in a rural commercial bank in a small town in Henan. Net Ease points out that this is related to the breach of guarantee the company is involved in.

NetEase reported that *ST Amethyst specializes in conducting research, development, production, and sales of optical storage media.

The company announced that it was under investigation by the China Securities Regulatory Commission in February for providing 14 companies with illegal guarantees.

Under the law, the company had to disclose the irregular guarantee issues. The announcement shows that *ST Amethyst has guaranteed 10 enterprises registered in Henan Lushi County for a total amount of 85 million yuan, the same as the amount of termed deposit certificates.

At present, the court has accepted the case but the hearing date is not scheduled at this time.

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