Ocean Grand appoints liquidators

By Jennifer Lanning Drey

Eugene, Ore., July 25 - Ocean Grand Chemicals Holdings Ltd. appointed Lai Kar Yan and Joseph Kim Ching Lo of Deloitte Touche Tohmatsu as provisional liquidators of the company, according to a Tuesday filing with the Stock Exchange of Hong Kong Ltd.

Ocean Grand previously appointed Deloitte to assist the company in reviewing the cash positions of its operating subsidiaries.

According to the filing, during the course of the audit, which is still continuing, the auditors identified potential accounting irregularities concerning the recoverability and genuineness of certain accounts receivable, amounts payable, sales, purchases and other company transactions.

The irregularities were found among Ocean Grand subsidiaries including OG Foshan, OG Aluminum, Kenlap Zhuhai, Kenlap Chemicals and Kenlap PGC.

The company said in the filing it is too early for it to know the total negative impact the audit's findings will have on the company.

However, the company's cash position has deteriorated to a level that is not sufficient to repay its short-term debts, according to the filing.

Ocean Grand is a Hong Kong-based chemical company.

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