Company was unable to repay significant short-term loans. This was not long after the Company announced significant rise in 1H08 profit. However, despite reported profit, the company had experienced a significant rise in working capital which meant good looking accounting profit was not translated into positive free cash flow.
It appears overstating the value of receivables and inventory masked a sharp slowdown in financial performance.
A PRC Court in Jiangsu appointed administrators to Company’s subsidiaries and banks refused to roll over the company’s loans. A statutory demand notice was issued against the company on 7 October 2009 and it was delisted from SGX on 11 March 2010
FerroChina: Annual Report 2007