November 16, 2017 / 3:02 PM / a year ago

China Huishan Dairy tells lawyers to ready provisional liquidation

HONG KONG, Nov 16 (Reuters) - China Huishan Dairy Holdings Ltd, which earlier this month said it had come to an agreement with a majority of Chinese creditors on a debt restructuring, said it instructed lawyers to prepare for its provisional liquidation.

China’s largest integrated dairy company said on Thursday it had issued the instruction after concluding at a Nov. 15 board meeting that the combined net liabilities of its subsidiaries in China “could have been” 10.5 billion yuan ($1.58 billion) as of March 31, 2017.

“The board has instructed the Cayman legal advisors of the Company to prepare the relevant documentation to place the Company into provisional liquidation,” China Huishan Dairy said.

“Such steps will take into account, as far as possible, options available to the company to preserve the assets of the group,” it said in a filing with the Hong Kong stock exchange.

Trading of shares in the company has been suspended since March. ($1 = 6.6283 Chinese yuan renminbi) (Reporting by Twinnie Siu; Editing by Alexander Smith)

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