Taizinai dairy group has fallen into provisional liquidation, owings its lenders US$440 million, the South China Morning Post reported. Taizinai mainly produces probiotic yogurt drinks, but has been experiencing difficulties since 2008 following overspending and overexpansion just prior to the country’s national dairy scandals. The dip in consumer confidence in the entire dairy industry weakened sales of the already vulnerable company, which includes Goldman Sachs and Morgan Stanley amongst its shareholders. The Zhuzhou city government took over unofficial management of Taizinai in February, but the government’s attempts to restructure the company’s debts and attract new capital failed to inspire sufficient confidence.
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