Report alleges Zhuhai behind company debt
2 August 2004
Provisional liquidators of bankrupt Zhu Kuan Group, the investment arm of Zhuhai municipality, claim the city government owes the company over half the HK$7 billion (US$900 million) it ran up in debts. Most of the company debt is with foreign banks. The Zhuhai government reportedly spent the bulk of the HK$4 billion on developments and property supposedly owned by Zhu Kuan, the South China Morning Post reported. For its part, the Zhuhai government obtained court orders enabling it to take possession of properties, which the government claims would offset debts Zhu Kuan owed the city. Provisional liquidators RSM Nelson Wheeler assert there is no record of any such debt owed the government.
