LEEFUNG-ASCO Printers Holdings says a customer in the United States owing it $28.5 million has sought protection under Chapter 11 of the bankruptcy code.
The customer accounted for about 3.8 per cent of its unaudited consolidated turnover in the six months to September 30, Leefung-Asco said.
'The directors believe the US debtor will be unable to pay the debts in full,' it said.
The firm said the financial problems of the US firm were partly due to claims made by other creditors, which had been the subject of US legal proceedings.
Leefung-Asco said it recently began legal proceedings in the High Court of London against two other customers who accounted for 2.4 per cent of its unaudited consolidated turnover in the six months to September.
The company is seeking the return of $15.7 million, unpaid despite repeated demands.