D'Long chairman under house arrest
24 August 2004
D'Long group chairman Tang Wanxin, recently returned after fleeing to Burma, was placed under house arrest in Beijing, according to a report in Caijing magazine. Other D�Long group officials have been arrested in Beijing and company offices are reportedly empty of the 300-odd staff who once worked there. The D�Long group, formed by Tang and his three brothers in 1986, owes up to RMB 30 billion (US$3.6bn) to investors through its 21 financial institutions. The D�Long scandal broke in April this year after creditor banks called for repayment of their loans. Despite the fact that D�long's liabilities far exceed its assets, authorities have not declared it bankrupt out of concerns over the effect this would have on investors. Plans now call for state-owned Huarong Asset Management Corp to take over and restructure group assts.