The amount is still unknown.
http://dealbook.blogs.nytimes.com/2010/04/14/china-dairy-with-u-s-bank-backing-goes-bankrupt/
Chinese Dairy Backed by U.S. Banks Collapses
April 14, 2010, 6:29 am
Taizinai, a Chinese maker of dairy products maker, is unable to pay its debts and will be liquidated, sources familiar with the matter said Wednesday. The company’s lenders include Royal Bank of Scotland and Citibank, with Goldman Sachs and Morgan Stanley among its investors.
Goldman and Morgan were part of a group, along with the private equity firm Actis Capital, that took a 31 percent stake in Taizinai for $73 million in early 2007, a time when the dairy firm, based in Hunan, planned to go public. The initial public offering never materialized.
The Chinese dairy industry was swept by a scandal over tainted milk and infant formula in 2008 that dented dairy makers’ reputations and led to greater government scrutiny of the industry. While Taizinai was not directly involved in the fiasco, the Hunan government took control of its dairy operations in December 2008, but has been unable to save the maker of yogurt drinks from a wider industry downturn.
The South China Morning Post first reported Wednesday that Taizinai had collapsed, citing documents from a court in the Cayman Islands, where the company is registered. It has debts of 3 billion renminbi, or $439 million, the newspaper said.
While Taizinai’s holding company is in liquidation because it is unable to pay its debts, its subsidiary in China is still operating, sources familiar with the matter confirmed for DealBook, while asking to remain anonymous because they were not authorized to speak to the media.
The Cayman documents named Borelli Walsh, an accounting firm based in Hong Kong that specializes in bankruptcies, as the company tapped to handle Taizinai’s accounts, and said Citigroup was one of the major lenders to the dairy maker. The accounting firm declined to comment, as did Citibank.
Taizinai’s financing from R.B.S. and Citibank came from a bank syndicate, which also included the Singapore bank DBS and two local banks, sources said.
http://dealbook.blogs.nytimes.com/2010/04/14/china-dairy-with-u-s-bank-backing-goes-bankrupt/
Chinese Dairy Backed by U.S. Banks Collapses
April 14, 2010, 6:29 am
Taizinai, a Chinese maker of dairy products maker, is unable to pay its debts and will be liquidated, sources familiar with the matter said Wednesday. The company’s lenders include Royal Bank of Scotland and Citibank, with Goldman Sachs and Morgan Stanley among its investors.
Goldman and Morgan were part of a group, along with the private equity firm Actis Capital, that took a 31 percent stake in Taizinai for $73 million in early 2007, a time when the dairy firm, based in Hunan, planned to go public. The initial public offering never materialized.
The Chinese dairy industry was swept by a scandal over tainted milk and infant formula in 2008 that dented dairy makers’ reputations and led to greater government scrutiny of the industry. While Taizinai was not directly involved in the fiasco, the Hunan government took control of its dairy operations in December 2008, but has been unable to save the maker of yogurt drinks from a wider industry downturn.
The South China Morning Post first reported Wednesday that Taizinai had collapsed, citing documents from a court in the Cayman Islands, where the company is registered. It has debts of 3 billion renminbi, or $439 million, the newspaper said.
While Taizinai’s holding company is in liquidation because it is unable to pay its debts, its subsidiary in China is still operating, sources familiar with the matter confirmed for DealBook, while asking to remain anonymous because they were not authorized to speak to the media.
The Cayman documents named Borelli Walsh, an accounting firm based in Hong Kong that specializes in bankruptcies, as the company tapped to handle Taizinai’s accounts, and said Citigroup was one of the major lenders to the dairy maker. The accounting firm declined to comment, as did Citibank.
Taizinai’s financing from R.B.S. and Citibank came from a bank syndicate, which also included the Singapore bank DBS and two local banks, sources said.
