August 8 – Jiangsu Qionghua High-Tech’s (002002) proposed asset restructuring plan was rejected after seven of the company’s board members argued plan is too simple and not credible, reports Shanghai Securities Journal, citing a company filing. The seven individuals also felt that the restructuring does not appear to protect key players’ interests. The company’s share trading resumed today.

On August 1, Qionghua High-Tech’s real controller claimed that the company is in the process of a major restructuring. Two days later, the restructuring party released a framework without specifications.

The Yangzhou-based firm pledged that it will not plan another restructuring within the next three months. The firm incurred a loss of 19.07 million yuan in the first half of 2011 and the company risks delisting if it is not able to return to profits.

Source:CapitalVue