Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

DAVOS 2017: Trump 'could hit the ball out of the park'

Read more

BUSINESS DAILY

DAVOS 2017: May's Brexit plan 'not realistic'

Read more

THE DEBATE

Showdown in Gambia: Foreign troops at border as Jammeh refuses to go (part 1)

Read more

THE DEBATE

Showdown in Gambia: Senegalese troops enter Country as Jammeh refuses to go (part 2)

Read more

PEOPLE & PROFIT

Davos 2017: Global leaders try to understand populist surge

Read more

BUSINESS DAILY

DAVOS 2017: What next for the global healthcare industry?

Read more

FOCUS

New initiative provides free services to homeless in Paris

Read more

THE INTERVIEW

Moving US embassy to Jerusalem would be 'a terrible mistake'

Read more

ENCORE!

Hisham Matar's memoir 'The Return' seeks answers in post-Gaddafi Libya

Read more

Asia-pacific Asia-pacific

Tainted milk scandal gives Sanlu financial headache

Latest update : 2008-12-25

Sanlu, the company at the heart of the Chinese tainted milk scandal, has to pay around 209 million euros to its creditors according to Chinese media. Sanlu was already bankrupted by the scandal.

REUTERS - The Chinese company at the centre of a scandal over tainted baby milk formula, and now made bankrupt, has some $293 million in debt, state media said on Thursday.

 

The Beijing News and the semi-official China News Service said China's Sanlu Group owed around 2 billion yuan ($292.6 million) in redundancy payments to employees and various suppliers and sales agents.

 

Officials at Sanlu could not be reached for comment by Reuters.

 

New Zealand dairy export giant Fonterra Co-operative Group Ltd said on Wednesday that Sanlu, in which Fonterra has a 43 percent shareholding, would sell its assets to pay creditors.

 

Fonterra has completely written off its NZ$201 million ($114 million) investment in Sanlu.
 

The Beijing News said more than 1,000 creditors had gone to Sanlu's headquarters in the northern city of Shijiazhuang to discuss how money owed to them would be paid.

 

Sanlu admitted in September that it had sold milk powder tainted with melamine, an industrial compound, causing kidney stones and other complications in children.

 
Chinese authorities said at least six children died and around 290,000 were made ill by the milk formula.

 

The melamine scandal battered faith in Chinese-made products, following a four-month campaign to bolster the country's food safety regime in the wake of a raft of quality scandals last year.

Date created : 2008-12-25

COMMENT(S)