China Clean Energy Announces Favorable Judgment in Lawsuit

FUQING CITY, CHINA / ACCESSWIRE / February 7, 2017 / China Clean Energy Inc. (OTC PINK: CCGY) (“China Clean Energy,” the “Company,” or “CCGY”) today announced that the Intermediate People’s Court of Fuzhou City, Fujian Province, China ruled in favor of China Clean Energy in certain claims against its wholly-owned operating subsidiaries, Fujian Zhongde Science & Technologies Co., Ltd. (“FZT”) and Fujian Zhongde Energy Co., Ltd. (“FZE”).

China Clean Energy filed suit against its subsidiaries in order to enforce actions taken to legally remove directors, management, and legal representatives of the subsidiaries, and replace them with persons chosen and authorized by China Clean Energy. The subsidiaries refused to comply with the authorized changes, thus necessitating the need for court enforcement.

The Court ruled as follows:

1. The January 17, 2015 Shareholder’s Resolution and the Letter of Removal and Appointment is legal and valid. (That resolution removed the former directors, Chairman, and legal representatives of FZT and FZE, and appointed Cosimo Borrelli, Jocelyn Chi, and Kevin Song as new directors, and appointed Cosimo Borrelli as the chairman and legal representative.)

2. FZT and FZE must register with the appropriate authorities said changes within 10 days of the ruling.

3. The Court rejected CCGY’s claim that requests its subsidiaries to turn over specific licenses, certificates, chops, financial documents, and other items that enable it to operate. The Court noted that the subsidiaries exist as independent legal entities, and there is no legal basis to force the divestiture of those items.

FZT and FZE have appealed this ruling to a Higher Court. The Higher Court’s decision is expected within the next 3 months.

“Fuzhou City Court’s ruling sends a strong signal that foreign shareholders’ legal rights will be enforced,” said Stephen Markscheid, the Court Appointed Receiver of China Clean Energy. “This ruling is an initial victory for us, while also supporting the investment climate in China.

Markscheid continued, “We are confident that we will regain control of our company. We look forward to ultimate success in our effort to recover some of the valuable assets owned by our shareholders.”

About China Clean Energy

China Clean Energy Inc. is a renewable fuel and chemicals manufacturer, specializing in the development, manufacturing, and distribution of biodiesel and specialty chemical products made from renewable resources. For additional information, please visit: http://www.chinacleanenergyinc.com.

Safe Harbor Statement

This announcement contains forward-looking statements. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the effectiveness, profitability, and the marketability of the Company’s products; the future trading of the common stock of the Company; the ability of the Company to capitalize on its expanded production capacity; the period of time for which its current liquidity will enable the Company to fund its operations; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the Company’s operating results and financial condition resulting from changes in raw material prices, international oil prices and price controls imposed by the Chinese government; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that the Company’s expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Company Contact:

Stephen Markscheid
smarkscheid@gmail.com

SOURCE: China Clean Energy Inc.

ReleaseID: 454575