HONG KONG, April 3 China Huishan Dairy Holding
Co Ltd said late on Friday that four independent
directors had quit and an executive remained missing, warning
shareholders it would need more time to check its financial
position before updating the market.
China Huishan, whose shares have been suspended after an 85
percent drop in a single day last month, said executive director
Ge Kun, who ran treasury operations for the group, remains
uncontactable. It has now filed a missing person report with
Hong Kong police.
Huishan grabbed headlines last year when it sold and leased
back part of its herd, but its most recent troubles have laid
bare risks of excess leverage and financial engineering in
unexpected quarters of corporate China.
Huishan said in Friday's statement that a Hong Kong court
had rejected an application by one of its creditors, Gopher
Asset Management Co. Ltd, to freeze assets of the company, its
controlling shareholder Yang Kai and his wife.
Huishan has denied reports of fraudulent invoices and stolen
cash, but last week laid out the depth of its unfolding crisis,
including that almost all of the shares owned by its controlling
shareholder had been pledged as collateral.
Trading in the company's shares remains suspended pending
further statements. It expects to update the market next week.
(Reporting by Donny Kwok; Editing by Stephen Coates)