Both of China Paper's IDs in S'pore resign

Singapore

CHINA Paper Holdings, which lost all its financial records in a fire in 2012, is once again in trouble. Both of its independent directors (IDs) in Singapore resigned yesterday, along with the company secretary, as the company applied for suspension from trading on Singapore Exchange (SGX) with effect from next Monday due to its inability to comply with SGX regulations.

The roots of this pulp fiction are restrictions imposed on China Paper by the Chinese authorities from remitting money outside of China to any of its subsidiaries, even if to pay for services rendered by professional service providers. These restrictions were imposed on the company last September as the Chinese authorities found its subsidiaries to have violated Chinese foreign-exchange laws and regulations. An inspection by the authorities revealed that China Paper's subsidiaries in China were making payments in the country for liabilities incurred by the company outside of China.