Rhine goes under with $200m in debt
The High Court has put jewellery retailer Rhine Holdings into compulsory liquidation with outstanding debts believed to be at least $200 million.
The group - along with subsidiary Rhine Jewellery - is being liquidated by provisional liquidator Kennic Lui LH & Co after unsecured bank creditors filed a petition.
Kennic Lui Lai-hang, a partner at the accounting firm, said he was trying to contact Rhine chairman Wang Mingqiang, who is alleged to have misused the company's mainland assets.
'We have tried to contact him, but in vain so far. Even Rhine directors have failed to contact him for more than a month,' Mr Lui said.
It is believed Mr Wang is in the mainland.
Rhine directors claimed Mr Wang, without their approval, used Rhine's entire 70 per cent interest in a property development joint venture in Shanghai in April as a guarantee for the benefit of Mr Wang's majority owned company Ningbo Dili Group.
Mr Wang joined the group in April, buying 25 per cent of Rhine from former chairman Chui Fat-chuen. However, Mr Wang failed to complete the deal.
'It is too early to say Rhine's asset value yet,' Mr Lui said.
Unsecured creditors - such as Banque Nationale de Paris (BNP), Credit Agricole Indosuez, Bayerische Vereinsbank, KBC Bank and Daiwa Bank - are owed a combined $6.29 million.
Rhine also has a $157 million convertible note due to mature at the end of this year.
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