Ocean Grand liquidators find asset value shortfall; creditor files suit against OG Development

By Caroline Salls

Pittsburgh, Nov. 28 - Ocean Grand Holdings Ltd. said provisional liquidators have uncovered a significant shortfall in the realizable value of the assets of the company and subsidiaries as part of an ongoing investigation, according to a company news release.

Also, on Nov. 15, Banca di Roma served a writ of summons and a statement of claim against Ocean Grand Holdings' wholly owned subsidiary OG Development Co. Ltd., claiming sums of $3.39 million, HK$7.71 million and HK$26,282, plus interest and costs.

In addition, the return date for the hearing on the wind-up of the company's petitions was postponed to Dec. 18 from Sept. 25.

Following reports by the provisional liquidators of accounting irregularities, the Commercial Crime Bureau of the Hong Kong Police Force conducted a number of searches at the premises of Ocean Grand and its subsidiaries, seized documents and records and interviewed staff of the Ocean Grand Group.

The CCB investigations are ongoing, according to the release, as are the provisional liquidators' investigations into the Ocean Grand Group's assets and liabilities and accounting irregularities.

Ocean Grand said the investigation has found an apparent falsification of accounting records and documents of the major operating subsidiaries of the Ocean Grand Group in China, prompting the shortfall in value of the assets.

According to the release, executive directors Hui Ho Ming, Herbert and Kwan Man Wai are co-operating with the investigation and actively helping the provisional liquidators in the day-to-day administration and management of the company, but Yip Kim Po, Yip Wan Fung and Li Lee Cheung, who are the legal representatives of four company subsidiaries, have failed to comply with the requests of the provisional liquidators to resign and to cooperate with the changing of the legal representatives.

Also, Ocean Grand Holdings said director Yip Wang Fung was arrested and released on bail.

Ocean Grand said the provisional liquidators are also continuing with efforts to preserve and protect the assets of the companies and to seek a buyer for all or part of the Ocean Grand Group's businesses.

Trading in the companies' shares was suspended on July 17 and will remain suspended until further notice.

Ocean Grand is a Hong Kong-based chemical company.

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