A factory owned by a bankrupt Chinese dairy firm that owes money to investors including Goldman Sachs (GS.NYSE) and Morgan Stanley (MS.NYSE) has been occupied by a mob employed by another of its creditors, the South China Morning Post reported. According to a circular sent to Hunan Taizinai’s creditors by liquidator Borrelli Walsh, a 40-strong mob believed to have been sent by a local building contractor has “occupied and taken control of all the premises” of the company’s third-largest factory. The general manager of the factory in Huanggang, Hubei province, was detained by the mob for 11 days before government officials secured his release. Taizinai, which makes probiotic yoghurt drinks, was in April put into provisional liquidation by a court in the Cayman Islands, where the company is legally headquartered. It has been in commercial difficulty since mid-2008 after sales were hit first by the Sichuan earthquake and then by the tainted milk scandal.
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