Creditors of Shanghai-based Fu Ji Foods and Catering Services, a caterer to the Beijing Olympics that now faces liquidation, hope to stop the liquidation process in an action backed by a a shareholders’ rights group, the South China Morning Post reported. Fu Ji owes bondholders more than US$258 million, but put itself into provisional liquidation on Monday. Fu Ji must pay off US$70.9 million in convertible bonds by November 9, but its provisional liquidators says it could not sell assets by the deadline, as most assets are unfinished building projects. A further US$206 million in bonds are due next October. Bondholders hope to convince Fu Ji to enter debt restructuring talks.
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