Appears that Fu Ji and First Natural aren't the first, but is a start of a trent of net nets going for liquidation and wiping out shareholders. The management seem to escape not just unscathed but with most of the booty.
Norstar chairman Lilly Huang convinced the High Court to put the firm into provisional liquidation. Norstar had made a wrong-way bet on accumulators and owed 39 million yuan on that contract. It had also been sued by a supplier for 326 million yuan.
However, according to Webb, the company should have had 753 million yuan of spare cash after these liabilities.
Lai has the same court-appointed role at Norstar. Deloitte is now selling the car-parts firm to state-owned Beijing West, which is connected to Norstar's management.
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