Coline Food Co., a foreign-owned company based in Shanghai, China, is to be auctioned off by liquidators on 7 March.
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The Malaysian-owned chocolate factory went out of business last October, despite being China’s largest chocolate producer, with registered capital of US$24m. The liquidators will auction off assets worth some 300 million yuan (US$2.2m). The assets include land, factory buildings and two production lines.
The liquidation is being managed by a group comprising the Bank of China, Germany’s Kommerzbank and a number of Chinese suppliers.
The move represents something of a landmark, as Coline is the first non-Chinese firm to be auctioned off after going out of business. Chinese bankruptcy laws are targeted primarily at domestic firms and foreign companies have often managed “to evade debts through regulatory loopholes”, said Agence France Presse.
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