Outside accountants called in to examine company accounts Creditors of Orient Power Holdings are enlisting independent accountants to look at the books of the electronic products manufacturer amid a debt standstill and disclosure concerns, according to sources. The move comes just weeks after Philips Electronics filed a US$60 million lawsuit against the company, the latest salvo in a high-profile dispute between Chinese manufacturers and global DVD giants. 'Creditors want to control the cash [of the company],' said one banker. Banks were recently informed of a debt moratorium. It is understood Deloitte Touche Tohmatsu is to be appointed to examine the company's books. The banker said that large sums of cash had been transferred into the company's joint ventures in China, and that creditors were 'losing faith' in the firm's management. There were also 'disclosure issues' relating to the company's reporting of contingent liabilities, he said. Orient Power did not return phone calls. According to IFR magazine, the company's debt stands at about $1.4 billion, including a $350 million loan that matures this month. The publication also reported that Standard Chartered Bank, which heads the creditors' steering committee and had been asking banks to continue supporting Orient Power, had been reducing its exposure to the company. By the end of May 'all hell broke loose', the banker said, referring to the Philips lawsuit. That came on the heels of a class-action lawsuit filed in the United States by a group of Chinese electronics manufacturers. Among the plaintiffs is a subsidiary of Orient Power, 77.5 per cent-owned Orient Power (Wuxi) Digital Technology. The companies are suing Philips, Sony Corp and Pioneer of Japan and South Korea's LG Electronics alleging price fixing, conspiracy to monopolise and other acts that violate US anti-competition laws. According to the Chinese manufacturers' lawyers, Handal & Associates, the litigation highlights 'the alleged nefarious dealings of the defendants in their quest to monopolise the DVD player business' by allegedly abusing the practice of 'patent pooling' to fix prices and create a monopoly in DVD players. The lawsuit was filed earlier this year at the District Court for the Southern District of California. It was amended last month to add extra allegations, including the unlawful collection of mandatory royalties for expired or invalid patents. The Philips lawsuit against Orient Power and 13 subsidiaries in Hong Kong, claims breach of contract and patent infringement. According to a High Court writ, Orient Power deliberately tried to shirk an obligation to pay royalties to Philips. It is alleged that the company, which made and sold compact disc and DVD players using Philips' patented products, used inaccurate or misleading sales reports to show fewer sales and thus pay less in royalties. Some CD player sales were simply not recorded, it said. Philips is also alleging breach of contract and conspiracy to cause damage. Orient Power said it would defend the claims. Orient Power has been listed on the main board since 1991. According to the company's last annual report, its net profit fell 58.6 per cent last year to $37.35 million on turnover of $4.13 billion.