Sino Agro Food has responded to a suit brought by several shareholders by hiring a U.S. law firm and stating that appointment of a receiver would do more harm than good in turning the company around.
SIAF shareholders Arne H. Fredly, Heng Ren Silk Road Investments LLC, and Heng Ren Investments LP are seeking the appointment of a receiver to the Nevada, U.S.A.-registered company, which has had a troubled existence since the failure of its shrimp megafarm in southern China and the announcement of ambitious but unrealized plans to develop aquaculture projects in Africa. In November, the plaintiffs alleged a history of mismanagement at the firm as well as non-delivery of earlier promises to improve corporate governance at the firm.
In a legal filing, Sino Agro counsel Lewis Brisbois Bisgaard & Smith LLP said the plaintiffs are “only three of over 10,000 shareholders of SIAF.” Sino Agro CEO Solomon Lee also provided affidavits from another shareholder, based in Tanzania, objecting to the appointment of the receiver.
Sino Agro’s lawyers claimed plaintiffs’ nominated receiver is from the U.S. state of Colorado and there is no indication that he speaks or reads Chinese – important skills for anyone seeking to run a company based in China. The company also said there is no guarantee the receiver would be better-positioned to guide the company to recovery than current management in China, “who are already working on several new projects to commence in 2022.”
Federal District Court Judge for the Southern District of New York Jesse Furman will now decide the issue.
Photo courtesy of Sino Agro Food
