SINGAPORE (Nov 23): OUE Lippo Healthcare, formerly known as International Healthway Corporation (IHC), has been ordered to pay RMB6 million ($1.2 million) plus interest for a claim brought against one of its downstream subsidiaries, Wuxi New District Phoenix Hospital.

The claimant, David Lin, alleges that he had previously granted Wuxi Hospital a loan in 2012 through the Bank of Nanjing, Shanghai Branch, and that an outstanding sum of RMB6 million has yet to be repayed.

A ruling in favour of Lin was subsequently passed by the Intermediate People’s Court of Wuxi City, Jiangsu Province.  

In a Thursday filing, OUE Lippo Healthcare says it has sought advice from its China counsel and will be appealing against the judgement. It has also instructed its Singapore counsel to take the necessary steps to safeguard the company’s interest against Lin.

Earlier, Lin had filed a claim that he owned 71% shares in another of the group’s subsidiaries, Shanghai Yilin Medical Management, in return for a capital injection from Lin.

The group issued an update in Oct informing shareholders of the matter, and said its subsidiaries intended to defend the claim by Lin.  

Shares in OUE Lippo Healthcare closed 1 cent lower at 12 cents on Wednesday.