WELLINGTON, New Zealand — A Chinese court has declared bankrupt the company at the center of a scandal over tainted milk blamed for killing six children and sickening almost 300,000 more.
New Zealand’s Fronterra Group, part owner in the Chinese venture, said Wednesday a court in Shijiazhuang, in China’s Hebei province, issued a bankruptcy order against Sanlu Group Co. in response to a petition from a creditor.
“Sanlu will now be managed by a court-appointed receiver who will assume responsibility for an orderly sale of the company’s assets and payment of creditors,” Fonterra chief executive Andrew Ferrier said in the statement. “There will now be a formal process to ensure that creditors are dealt with in accordance with Chinese law.”
Fonterra, a New Zealand farmer-owned cooperative, owns 43% of Sanlu.
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