Jiang Long Holding Three Party Talks On Debt Issues

The largest printing and dyeing enterprise in China, Tao Shoulong, chairman of Jiang long holding group and his wife, Yan Qi, have been arrested by Shaoxing's local procuratorate.

Yesterday, it was learned that as the debt situation of Jiang long holdings was complex and the restructuring of enterprises was in trouble, the debt problem of suppliers and private lending creditors was still not recognized by all parties. 500 creditors will participate in the three party meeting today to discuss the solution of the debt problem.

Chairman and wife were arrested. Shaoxing County People's Procuratorate arrested Tao Shoulong, chairman of Jiang long holding company. He was suspected to be guilty of illegally absorbing public deposits and Deliberately Destroying Accounting vouchers.

Yan Qi, the general manager, was guilty of Deliberately Destroying Accounting vouchers.

According to local media reports, it has been verified that between December 2007 and July 2008, due to insufficient liquidity, difficulties in bank loans and unable to pfer loans due to maturity, Tao Shoulong had raised funds to many companies in Hangzhou and Shaoxing as well as song and Li in the name of his company's personnel and friends. The monthly interest rate was up to 6% to 9%, and the total amount of funds raised amounted to more than 8000 yuan. The principal was nearly 70 million yuan and could not be repaid.

Mr. Fung, a supplier, said that the 80 million yuan is only a partial debt that can be verified. The total amount of debt actually owed to private borrowings is much higher than this figure.

Tao Shoulong, who is a listed company in Zhejiang, is also suspected of destroying information and hiding the true financial situation.

500 creditors will meet again today, Mr. Feng said yesterday that the intermediate people's court and the Shaoxing County People's government will convene a meeting of suppliers and private lending creditors at the headquarters of Jiang long holding company. The time will be set at nine o'clock this morning and ten points.

According to the disclosure, all employees of the dragon group have recovered their wages, but the business commissions of the salesmen are still unavailable.

A salesperson told reporters that according to the regulations, the company still owed him two hundred thousand yuan, but he expressed no hope. At present, he was just waiting to see the progress of the incident and did not plan to recover it.

According to the insider, many enterprises are interested in the reorganization of Jiang long.

Shaoxing County Keqiao Economic Development Zone Management Committee once read a document to creditors that Jiang long holdings would "liquidate and restructure assets", but did not issue the document directly to creditors.

But yesterday, the director of the Keqiao Development Zone Management Committee failed to confirm the news.

Some analysts believe that Tao Shoulong's debts borrowed in the name of individuals and the debts of Jiang long holdings will be dealt with separately. Tao Shoulong's "personal debt" is most likely to fail.

The insider disclosed that the Dragon assets had been planned to be auctioned, the local Tianma, Tiansheng and other four companies intended to invest, but still unresolved.