Chinese Dairy Co Bankrupt In Wake Of Melamine Scandal

Sanlu Group, one of the companies involved in the recent Chinese melamine in infant formula crisis, was declared bankrupt on Christmas Eve.

A court-appointed receiver will take over management of the company and has six months to sell its assets and pay creditors.

The major shareholder in the company is said to be New Zealand dairy giant Fonterra.

“We have been aware of this commercial reality and that was the reason we elected to write down the full value of our investment in Sanlu," Fonterra CEO Andrew Ferrier was quoted as saying.