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by Mike Caswell

A shareholder of CF Energy Corp. has won a decision in the Supreme Court of British Columbia related to a loan agreement between the company and its late founder, Huajun Lin. The agreement is six years old and has been held up by the beneficiaries of Mr. Lin's estate, the shareholder claims. The agreement was worth 36 million renminbi, or $6.8-million, when signed.

The victory is contained in a ruling released on Monday, March 9. The case was brought by Leean International Corp., a shareholder looking to enforce an agreement that CF Energy entered into in May, 2017. The agreement would have seen CF Energy repay a loan from Mr. Lin and, at the same time, have Mr. Lin purchase shares in the company equivalent in value to the loan. (The deal was essentially a shares-for-debt transaction, albeit with a more complex structure.)

The transaction was never completed and Mr. Lin died on March 1, 2019. After his death, his daughter took over as chief executive officer of the company and as its chairman. Another of his relatives serves as a director. The estate also remains a significant shareholder, as Mr. Lin owned 54 per cent of CF Energy's shares.

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