Beijing-based Lentuo International (LAS) is up nearly 2% late Friday as the auto retailer responds to another critical article over debt issued by GeoInvesting, this one dated June 5. 

In its response, Lentuo says the article distorted the comany’s previous response and repeatedly fabricated misleading allegations.The company further stated that all of the allegations are based on incorrect information that has been issued by third parties. 

The company and Hetong Guo, chairman of the company who also controls Lentuo Electromechanical, which is not part of the company, further clarified the following: 

As stated in the letter: the RMB150 million trust loan was incurred by LE in January 2014. None of the revenues of the co were ever nor are they currently pledged as collateral for the trust loan. The trust loan is primarily secured by the real estate assets of an independent third party with a value exceeding two times the amount of the loan. The loan is also personally guaranteed by the borrower’s controlling shareholder, Mr. Guo, which is typically required by banks in China. Mr. Guo believes that, in light of the assets that back the loan, any risk of triggering his personal guarantee of this particular loan is remote. The co believes that Mr. Guo’s handling of his personal wealth and affairs poses no particular risk to the co and thus does not warrant disclosure. 

Among all of the loans incurred by LE, there is not a trust loan in the amount of RMB100 million. Furthermore, neither the co nor LE has any dealership in Beijing Yayuncun area or in the City of Changchun nor do they currently plan to establish dealerships in these places. . . 

LAS traded as high as $3.40 earlier in the session. It moves in a 52-week range of $1.70 to $6.05.