Here's a short clip discussing ShegdaTech prior to the delisting.
The numbers involved are significant.
ShengdaTech has filed a Chapter 11 Bankruptcy, and it's not your Grandfather's Chapter 11.
A remarkably aggressive initial order right out of the chute is designed to protect the Chief Restructuring Officer and the Special Committee, and "ShengdaTech filed for and was granted a temporary restraining order from the US Bankruptcy Court blocking its shareholders and or member of its board of directors from taking any action that interferes with Kang's activities or those of the company's so-called Special Committee. The restraining order also prevents the appointment of any new person, and one Mr. Gongbo Wang in particular, to ShengdaTech's board of directors."
I don't know much about ShengdaTech. In fact, I only learned about the filing of the Chapter 11 and the unusual preliminary injunction this morning.
But if the SEC is investigating, and KPMG has resigned as the auditor, saying some disturbing things about the financials, one has to wonder if this if a perfect company.
This Chinese company was traded on our stock exchange because of a reverse merger into a publicly traded company.
Here's what I wonder: is this the tip of the iceberg? Are there other Chinese Companies that trade on a different board that also have creative books?
I'll watch that space and let you know if I find out.
Although I suppose that finding out might involve learning Mandarin.
Never mind.
I'll let somebody else find out, and tell you what they have to say!
