Huishan Dairy, the Chinese company whose share price plunged 90 per cent last week in Hong Kong, has confirmed it met with nearly two dozen creditors after failing to make interest payments and revealed it has lost contact with the head of its treasury operations.
Shenyang-based Huishan Dairy confirmed on Tuesday that it had been unable to make interest payments and “with the support of the Liaoning provincial government . . . [had] held a meeting with 23 creditor banks” on March 23. In a filing to the Hong Kong stock exchange, it said the Liaoning government had set out a plan for overdue interest payments to be remedied within two weeks.
In its first public comments since Friday’s stock plunge and subsequent trading halt, the company said that chairman and controlling shareholder Yang Kai had learned of the late payments on March 21. That same day, Huishan said, it lost contact with Ge Kun, an executive director responsible for treasury and cash operations — including expenses — as well as relationships with the company’s principal bankers.