Ocean Grand gets delisting deadline

PUBLISHED : Thursday, 13 March, 2008, 12:00am
UPDATED : Thursday, 13 March, 2008, 12:00am

Collapsed aluminium products maker Ocean Grand Holdings may be delisted from September 12, the stock exchange said yesterday.

Hong Kong Exchanges and Clearing said that since Ocean Grand had been suspended from July 2006 and had not submitted a resumption proposal, it had entered the third stage of the delisting process.

The exchange said Ocean Grand would be delisted on September 12 unless its provisional liquidator, Derek Lai Kar-yan, submitted a valid resumption proposal and won exchange approval within six months.

The company would also have to clarify its financial position and accounting irregularities, and would have to publish all outstanding financial results, the exchange said.

Mr Lai last month submitted a resumption of trading proposal for subsidiary Ocean Grand Chemicals Holdings after a group of professionals agreed to inject money into the company through a white knight.

The white knight, Perfect Ace Investment, plans a range of measures to rescue Ocean Grand Chemicals, such as capital re-organisation, debt restructuring, a subscription of new shares and a placement of new shares.

Ocean Grand and its subsidiary collapsed in July 2006 after an audit found that more than 800 million yuan had gone missing from both companies. They were then placed under Mr Lai's supervision.

Founding chairman Michael Yip Kim-po, his sister Yip Wan-fung and three others were arrested.

All five will appear in the court next Wednesday for a pre-trial review on 23 charges, including conspiracy to defraud and conspiracy to steal.

Separately, the exchange also announced it would delist Orient Power Holdings from Friday.

The company, which is in compulsory liquidation, has been suspended since April 2006 and has been unable to submit a share resumption proposal.