NEW YORK Three
directors of an embattled Chinese recycling company have
resigned in the aftermath of regulators seeking to liquidate
the company on charges of fraud.
China Metal Recycling
(Holdings) Ltd. said Aug. 15 that Leung Chong Shun, Chan Kam
Hung and Fung Ka Lun resigned between Aug. 5 and 7, barely a
week after Hong Kongs Securities and Futures Commission
(SFC) announced that it had petitioned Hong Kongs Court
of First Instance to liquidate the publicly listed company
amm.com, July 29).
The SFC said its
investigation supported the findings of U.S.-based research
firm Glaucus Research Group California LLC that the company had
overstated its operations and revenue.
The court appointed
two provisional liquidators following the SFC filing and since
then Hong Kong police reportedly have arrested four people,
including China Metal Recyclings co-founder and executive
director, Chun Chi Wai.
The court earlier this
month ordered a continuation of the liquidation process until
it makes a further order (
amm.com, Aug. 5). CMR, which had claimed to be
Chinas largest metal recycler, failed to appear at an
Aug. 2 hearing to oppose the appointment of the provisional
liquidators, the SFC said.