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China Sky Chemical Fibre seeks trading halt on lawsuits against units
CHINA Sky Chemical Fibre on Friday requested a suspension in the trading of its shares on Singapore Exchange (SGX) after China Construction Bank filed five lawsuits against two of its subsidiaries in Quanzhou, China.
"As the board has no details of the lawsuits and the total claim amounts, the board is seeking confirmation from the legal representative of the two subsidiaries, and has directed him to produce all the legal documents pertaining to the suits," China Sky Chemical Fibre said.
Independent director Er Kwong Wah said in the media release that the board was making an assessment on whether the company was able to operate as a going concern.
On Aug 8, 2016, the company had sought a halt in the trading of its shares on SGX after the regulator asked if there were any unannounced lawsuits.
China Sky Chemical Fibre had resumed trading of its shares last September after a four-year suspension that came after a scandal linked to its former chief executive landed the company in regulatory troubles.
The China-based, mainboard-listed nylon and textile producer had spent the four years poring over its accounts.