Bondholders owed money by troubled Beijing Olympics caterer Fu Ji Foods and Catering Services are forming an action group to oppose the company going into liquidation. A shareholders' rights group also urged the Securities and Futures Commission to intervene in the Fu Ji case to protect minority investors, who could see their entire investments wiped out if Fu Ji is wound up. The Shanghai-based firm, which owes its bondholders more than HK$2 billion, put itself into provisional liquidation on Monday. At least a dozen of Fu Ji's approximately 100 bondholders will meet tonight at the Hong Kong offices of accounting firm KPMG to hatch a plan to derail the winding up process, according to one creditor who plans to attend the talks. More could join the group as they become aware of its existence. The bondholders would ask Fu Ji to start debt restructuring talks with them, the creditor said. Fu Ji must repay HK$550 million of convertible bonds on November 9. It has another HK$1.6 billion payment to holders of convertible bonds due next October. The company has HK$3 billion of assets, according to its provisional liquidator, Derek Lai Kar-yan of Deloitte Touche Tohmatsu. Lai said Fu Ji could not sell assets by November 9. The lion's share of Fu Ji assets are unfinished building projects. Little is known about Fu Ji's true financial position because it has not released accounts since September last year. It is unclear whether Fu Ji has outstanding bank loans on top of its convertible bonds, so its liabilities may exceed its assets. But there is a slim chance Fu Ji can exit provisional liquidation if it can secure a reprieve from the looming bond payment, meaning it could stay on the Hong Kong Stock Exchange. The bondholder who will attend tonight's meeting said creditors could give Fu Ji more time to repay its bonds. He also accused Fu Ji of keeping its creditors in the dark. 'Bondholders will probably be quite happy to explore a [loan payment] standstill agreement and buy [Fu Ji] some time,' he said. 'It was very surprising that the company moved to appoint provisional liquidators without consulting creditors and denying creditors the option to explore alternatives. We were not told by anyone that Fu Ji was going into provisional liquidation.' Fu Ji is in the first stage of the insolvency process, and could exit provisional liquidation at any time until it is formally wound up by the High Court. Ricky Tam Siu Hing, the head of the Hong Kong Institute of Investors, said: 'The SFC really has to look at this situation. The company might be able to avoid liquidation, but if it is wound up, minority shareholders may lose everything.' An SFC spokesman declined to comment. Deloitte's Lai defended his role, saying he was appointed by a High Court judge. 'I think the judge has obviously gone through the relevant documents and he was satisfied that there was an urgency to appoint provisional liquidators in this case.' For the six months to September last year, Fu Ji reported a 250.23 million yuan (HK$286 million) net profit. The firm's shares, priced at HK$7.60, were suspended from trading in July because the company failed to publish its 2008-09 annual results. Fu Ji's fortunes may have worsened since it last updated shareholders. A group of Fu Ji middle managers have absconded and set up a competing business, people with knowledge of that situation have said. Fu Ji's chairman, Wei Dong, is still with the company and working closely with Deloitte. When Hong Kong companies enter provisional liquidation, their advisers can immediately sell assets to recoup cash for creditors. Secured creditors, such as banks with mortgages over properties, get most of the proceeds. Bondholders generally get some of what they are owed and shareholders often end up with nothing. The bondholders are meeting at KPMG because it is the liquidator to the Hong Kong arm of defunct investment bank Lehman Brothers, which owned Fu Ji bonds. KPMG's head of restructuring services for China, Edward Middleton, declined to comment.