China Huishan Dairy Holdings, struggling under billions of dollars worth of debt, is preparing for provisional liquidation in a legal escalation of one of the most spectacular collapses of a Hong Kong-listed firm in recent years.
Shares in the mainland group, once a hot property with investors, have been suspended since they plunged 85 per cent without warning in March, after which it revealed missed loan payments and the disappearance of its finance director.
The move comes as creditors in China and offshore jostle for position to get their money back from the firm, whose debts totalled at least 38 billion yuan ($US5.73 billion) at the end of July, according to a work-out plan seen by Reuters.
Hong Kong-based restructuring lawyers said the…
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