Sanyuan Group successfully obtain part of bankruptcy assets of Sanlu by auction with 616.5 million RMB
News on March 4: at 10:00 on March 4, part of bankruptcy assets of Sanlu Group opened public auction at Shijiazhuang Intermediate People’s Court. The latest news said Beijing Sanyuan Group successfully obtain part of bankruptcy assets of Sanlu by auction with 616.5 million RMB.
Sanyuan Group auction for two items of Sanlu assets
According to the last auction results, Sanyuan Group and Hebei united auction body successful bid for Sanlu bankruptcy property package with 616.5 million RMB. The two items that Sanyuan obtains includes: Sanlu Group’s land-use right, housing buildings, machines and equipment and other effective sustainable management of assets; 98.80% of the investment interests of Xinxiang City Dairy Co., Ltd. held by Sanlu Group.
Sanlu Group at heart of China milk scandal ordered bankrupt by courtÂ
News on February 12: The Intermediate People’s Court of Shijiazhuang, capital of the northern Hebei Province, has declared dairy giant Sanlu Group, the company at the heart of the melamine contamination scandal, bankrupt.
However, the Sanlu Group had failed to repay the outstanding debts, whereas its debts surpassed its assets. It met the conditions for bankruptcy, according to the court order. Sanlu Group has 274 creditors, with the largest being Sanlu Business and Trade Company, a wholly-owned subsidiary of the group itself. The other creditors include banks, distributors and suppliers.
Moreover, on Dec. 19, the group borrowed 902 million Yuan (132 million U.S. dollars) to pay the medical fees of children sickened by its melamine-tainted baby formula and to compensate the victims, which increased its debt to 1.1 billion Yuan. Beijing Sanyuan Foods Co. Ltd., a potential buyer of Sanlu assets, said Thursday it did not know the details of Sanlu’s bankruptcy, but was watching developments closely.
Shijiazhuang court declared Sanlu bankruptcy; 900 million as compensation
Shijiazhuang San Lu Group which involves in melamine milk powder incident has been issued a bankruptcy order by the court, according to its New Zealand shareholder. Data from Trade and Industry show that by the end of 2007, the total assets of Sanlu are 1619 million yuan, while the total liabilities are 395 million yuan, the net assets are 1224 million yuan. However, the current news released that Sanlu milk powder incident needs to 900 million yuan compensation. As a result, banks and dealers may be compensated about 324 million, which is far lower than the refund number with over 600 million yuan which have not compensated.
Sanlu enters into the bankruptcy proceedings, who is the biggest loser?
According to the Ministry of Health recently informed about the children, with urinary abnormalities as a result of Sanlu milk powder and other individual milk powder, have reached over 290 thousand people. The disclosure of Sanlu milk powder incident from the beginning to now is always attracting great public concern. Sanlu now enters into the bankruptcy proceedings, which marks the event having entered a new stage in the process. However, Sanlu bankruptcy, who will be the biggest losers? Is a manufacturer, distributor or the consumer?
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