November 28, 2017 / 12:47 PM / a year ago

Creditors file bankruptcy plea against two China Huishan subsidiaries

HONG KONG, Nov 28 (Reuters) - China Huishan Dairy Holdings , burdened by billions of dollars worth of debt, said on Tuesday its creditors had filed a plea in a local court for bankruptcy restructuring against two if its wholly-owned subsidiaries.

The application was filed on Tuesday against Huishan Dairy China Co Ltd and Liaoning Huishan Dairy Group Shenyang Co Ltd by the embattled company’s onshore creditors, it said in a filing to the Hong Kong stock exchange.

Shares in China Huishan, once a hot property with investors, have been suspended since they plunged 85 percent in March, after which the company said it had fallen behind with some loan repayments.

The company’s debts totalled at least 38 billion yuan ($5.73 billion) at the end of July, according to a work-out plan seen by Reuters.

Huishan, billed as China’s biggest integrated dairy firm when it went public in 2013, said this month it was preparing for provisional liquidation. In response to its creditors’ latest action, Huishan said on Tuesday it was taking legal advice on the banks’ bankruptcy restructuring plea and would take such steps to preserve the assets of the company. (Reporting by Sumeet Chatterjee. Editing by Jane Merriman)

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