Taizinai owes foreign and domestic firms

08:07, December 06, 2010      

Email | Print | Subscribe | Comments | Forum 

Taizinai, a leading Chinese yogurt producer now undergoing bankruptcy reorganization, declared on Saturday it has enormous debts owed to domestic investors along with unconfirmed ones to foreign investors, including Citibank.

Beijing-based Deheng Law Office, which was designated by a local court to handle the bankruptcy proceedings of Taizinai's major branches in Hunan Province, held a meeting with representatives of 579 creditors in the capital, Changsha, late Saturday and announced the dairy group's provincial branches owe 1.213 billion yuan (US$182 million) to 1,315 domestic investors.

In addition, more than 30 creditors, including Citibank, the Royal Bank of Scotland and many overseas organizations and individuals, have claimed several billion yuan in debts from Taizinai, but the amount is still being studied, the law office said.

Citibank alone had claimed 540 million yuan while RBS demanded payment of nearly 200 million yuan from Taizinai, it said.

However, the Beijing law office didn't announce details about payment procedures, leaving many creditors displeased.

Taizinai, which has branches in Beijing as well as Hubei and Sichuan provinces and on Cayman Islands, owes a huge debt due to its rapid expansion which was backed by investment banks such as Actis Capital, Morgan Stanley and Goldman Sachs.

In April, a Cayman Islands court declared Taizinai's local branch bankrupt due to its debt to Citibank.

Creditors have filed bankruptcy lawsuits against the dairy maker in different places in China.

The government of Zhuzhou, where Taizinai is headquarted, has set up a firm as the sole leasing operator of Taizinai in an attempt to lead the diary maker out of bankruptcy.

(Editor:李佳)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • U.S. President Barack Obama (4th L, front) shakes hands with outgoing Chairman of the Joint Chiefs of Staff Admiral Mike Mullen (1st R, front) as Vice President Joe Biden (3rd L, front), Secretary of Defense Leon Panetta (2nd L, front), and Army General Martin Dempsey (1st L, front) look on during the Chairman of the Joint Chief of Staff Change of Responsibility Ceremony at Joint Base Myer-Henderson Hall in Arlington, the United States, Sept. 30, 2011. Army General Martin Dempsey succeeded Mike Mullen to become the 18th Chairman of the Joint Chief of Staff on Friday. (Xinhua/Zhang Jun)
  • Chinese national flag guards escort the flag across the Chang'an Avenue in Beijing, capital of China, Oct. 1, 2011. More than 120,000 people gathered at the Tian'anmen Square to watch the national flag raising ceremony at dawn on Oct. 1, in celebration of the 62th anniversary of the founding of the People's Republic of China. (Xinhua/Luo Xiaoguang)
  • Pedestrians walk along the barrier set by police on Wall Street in New York, the United States, Sept. 30, 2011. Police set up the fences to keep away the demonstrators of the Occupy Wall Street campaign. (Xinhua/Shen Hong)
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
Hot Forum Discussion