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.