Consumer Staples

FU JI Food and Catering Services Holdings Ltd (1175 HK)

Year: 2009

Chinese catering company FU JI Food and Catering listed in Hong Kong in 2004. In July 2009, the company announced that it was unable to publish its results and was suspended in line with stock exchange listing rules. Various directors resigned over the following months citing a lack of communication from the company. In October, the company appointed provisional liquidators as it was unable to repay a HK$2bn convertible. It appeared that control over the company’s main operating subsidiaries in China was lost at some point during the FY09. These subsidiaries were de-consolidated. The strong suspicion was that the rapid voluntary liquidation was used to avoid repayment of offshore debt, due to be repaid in November 2009, just after the winding up petition was filed. However, our analysis suggests that the company had been faking its profits and was unable to repay creditors. 

Last updated December 2021

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