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Firm risks bankruptcy amid lending fight

Updated: 2012-02-25 08:26
By Xie Yu ( China Daily)

Firm risks bankruptcy amid lending fight

SHANGHAI - A Zhejiang company accused of illegally raising billions of yuan may not have enough assets to repay its debts amid a crackdown by Chinese authorities on private lending.

Liren Group, a company that started by opening a private school and later came under suspicion from authorities during a government campaign against illegal fundraising, may have to declare itself insolvent, the auditing firm said on Friday.

"I expect its net assets are lower than half of its debts, which surpass 4.5 billion yuan ($700 million), according to the company's financial statement," said Liu Xuhai, chairman of the Zhongyuan Auditing Firm.

Firm risks bankruptcy amid lending fight

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