Chinese Dairy Firm Collapses

Hunan Taizinai Group, which counts Morgan Stanley and Goldman Sachs among its investors and Citigroup among its lenders, has gone into provisional liquidation with debts of CNY3bn ($439.5m).

The company’s business is believed to have affected by the melamine-scandal that hit China, according to Reuters.

In 2007, Morgan Stanley, Goldman and private equity firm Actis Capital paid $73m for a 31% stake in the Chinese dairy firm, with Morgan Stanley providing $18m, Goldman $15m and Actis Capital $40m.

The Grand Court of the Cayman Islands has appointed Hong Kong accountant Borrelli Walsh as provisional liquidators, the South China Morning Post reported, citing documents from a court in the Cayman Islands.

The company also owed money to the Royal Bank of Scotland, Britain and Singapore’s DBS.