U.S. Court-appointed Receiver for Sino Clean Energy Inc. (Nasdaq "SCEI") taking control of Chinese Company
11 Jan, 2015, 08:00 ET
NEW YORK and XI'AN, China, Jan. 11, 2015 /PRNewswire/ -- After exhausting nearly all avenues of cooperation with Chairman Baowen Ren, Robert W. Seiden, Esq., Court-Appointed Receiver ("Receiver") of Sino Clean Energy, Inc. ("SCEI") has taken decisive steps to taking complete control over SCEI and its China operations. SCEI is a leading producer of coal-water slurry fuel in China.
Mr. Seiden already has control over Wiscon Holdings Limited ("Wiscon"), SCEI's subsidiary in Hong Kong and has formally removed the board of the operating company Tongchuan Suoke Clean Energy Co. Ltd. ("Tongchuan") and appointed a new board of directors, thereby changing control of the operating company in China.
The Receiver had no other choice but to take this measure after SCEI and Mr. Ren did not release "before the end of October 31, 2014" the company's financials to the public as they stated they would in their August 21, 2014 press release. See: http://finance.yahoo.com/news/sino-clean-energy-announces-intent-130000862.html
The Receiver was previously appointed and granted broad powers by the Nevada state court in the U.S. on May 13, 2014, pursuant to certain court orders. See: http://finance.yahoo.com/news/nevada-judge-peck-appoints-seiden-063800190.html;_ylt=A0LEV7mwF6tURVsA5_kPxQt.
The Receivership was secured by a group of U.S. investors after SCEI stopped filing required reports with the U.S. SEC in 2012 and was de-listed from the public stock exchange.
To date, the Receiver (who has agreed to defer his and his professional's fees as per the court order) has fulfilled the following tasks:
- Removed the current board of directors of SCEI's operating company inside China.
- Formally appointed a new board of directors and chairman of Tongchuan. The new board chairman is American business man and SCEI shareholder James Sutter.
- Appointing interim management to take control of the day-to-day operations.
- Communicated with U.S-based and Chinese government authorities to have Mr. Ren's actions examined.
- Sent formal communique to SCEI and its affiliate's Chinese banks requesting that Sino's accounts be seized and the signatories be changed and control be transferred to the Receiver's agents.
- Communicating with suppliers, customers and other business partners of SCEI in China and globally.
- Selecting an independent board audit committee to report on the financials of SCEI and its subsidiaries.
- Pursuing other legal action with the law firms JunHe and Katten Munchin.
The Receiver is providing this press release for informational purposes only. Parties should consult their advisors for specific advice regarding this matter. Any acts of the Receiver remain subject to change. For media inquiries, please contact the office of the Receiver at (212) 768-9808 or email Heike Vogel at [email protected].
SOURCE U.S. Court-appointed Receiver for Sino Clean Energy Inc.
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