The latest news about Sino-Environment is that Sam Chong Keen has stepped down as CEO and the company has on 11 May 2010 made an application in the High Court of the Republic of Singapore (the “Court”) to place the Company under judicial management.
Looks like the restructuring is not going to happen. This is not surprising if you read the “Cash and Special audits” announcement released about a week ago. Some examples:
- As a result of the resignations of a substantial number of staff in the China subsidiaries of the Company (“the China subsidiaries”), the process of locating outstanding information and documents was considerably impeded.
- The Manager had difficulties confirming the signatories for the Group’s other bank accounts as there was lack of information due to the resignations of the former staff of the China subsidiaries who were privy to such information. Those former staff and possible bank signatories could not be located by the Manager. The Manager could not get any of the remaining employees of the China subsidiaries to assist in locating those former staff.
- The Company’s CEO subsequently spoke to Sino-Environment’s former Executive Chairman and CEO, Mr Sun Jiangrong to request for his assistance in identifying and locating the bank signatories of the China subsidiaries’ other bank accounts in China. He did not provide any assistance.
- The Board decided to appoint Beijing-based law firm, Tian Yuan Law Firm (“TYLF”) to commence procedures to secure the rights of the Board to appoint new bank signatories for the relevant bank accounts, legal representatives and directors for all the Group’s China subsidiaries. TYLF also verbally informed the Company that the work is expected to take between one to two years to complete.
In view of such circumstances, what can anyone possibly do? You can’t even access your own bank accounts! And everyone has gone missing. Investors in Sino-Environment have surely been taken for a long ride.
Another reason for me not to touch S-Chips – ever. It is just too difficult to do the necessary due diligence on these companies.