Published October 23, 2008

China Printing couple arrested: reports

Sacked CEO, deputy went missing after parent reportedly went bankrupt

By LYNETTE KHOO

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THE sacked chief executive and deputy chief executive of China Printing & Dyeing Holdings were arrested in China on Saturday, according to media reports there.

Mr Tao: Holds a 58% stake in China Printing with his wife Madam Yan

But so far, there has been no official information on the arrest, and China Printing has not made an announcement to the Singapore Exchange.

The duo went missing around Oct 4 when China Printing's parent company Jianglong Holdings reportedly went bankrupt. Operations at China Printing and Jianglong Holdings have ceased, and shares of China Printing have been suspended since Oct 13.

This week, the independent directors (IDs) of China Printing terminated the services of CEO Tao Shoulong and deputy CEO Yan Qi and removed them as signatories to the group's bank accounts in Singapore. Mr Tao and his wife Madam Yan are chairman and CEO of Jianglong Holdings respectively.

The IDs of China Printing are now looking at a possible reorganisation of the company to minimise losses to shareholders. All of China Printing's operations are under its wholly owned subsidiary Zhejiang Jianglong Textile Printing & Dyeing Co in Shaoxing County in China.

After the duo disappeared, the Chinese authorities placed Zhejiang Jiang- long's premises under 24-hour guard and took the company's seals for safe-keeping. The wages of the employees have also been settled by the Chinese authorities.

A company source told BT the financial condition of Jianglong Holdings and China Printing will not be clear until the IDs and CFO of China Printing finish scrutinising the accounts.

The IDs said that they will work with the authorities to decide the best way to realise Zhejiang Jianglong's assets and liabilities. China Printing CFO Goh Cher Shua is going through the group's accounts with the Chinese authorities.

Jianglong Holdings, a private company owned by Mr Tao and Madam Yan, holds a 58 per cent stake in China Printing. According to recent media reports, Jianglong Holdings ran up debts amounting to some 200 million yuan (S$43 million), owed to 300 small suppliers.

About 33 per cent of China Printing shares are in public hands. New Horizon, a Cayman Islands-incorporated private equity fund, has an 8 per cent stake. The fund's limited partners are Temasek Holdings and SBI Holdings Inc.