China Medical Technologies Inc. posted the biggest two-day drop since April in New York after Stroock & Stroock & Lavan LLP said bondholders of the Beijing-based medical device company filed a petition for liquidation.
American depositary receipts of China Medical traded on the U.S. over-the-counter market dropped 8.6 percent to $4.65 in New York yesterday, after tumbling 14 percent on June 15.
Debt holders of China Medical directed Wilmington Trust to file a so-called winding-up petition with the Grand Court of the Cayman Islands on June 15, Jayme Goldstein, a lawyer at Stroock & Stroock & Lavan said by phone yesterday, adding his firm represents individual bond holders in the case. He declined to name his clients or give further details, citing the firm’s policy.
Eric Schaffer, a New York-based partner at Reed Smith LLP, confirmed that he was the U.S. counselor for Wilmington Trust, which acts under the direction of bond holders, while declining to provide more information before getting consent from his client.
China Medical, a Cayman Islands-registered company, raised $110 million in its U.S. initial public offering in August 2005. The Nasdaq stock exchange said March 14 it was delisting the company’s ADRs, according to a statement from the bourse.
The company defaulted on the interest payment due Dec. 15, 2011, for its 6.25 percent convertible bonds which mature in December 2016, according to data compiled by Bloomberg.
The liquidation filing was not available yesterday as the court system in the Cayman Islands was closed for a public holiday.
E-mailed messages sent after hours to China Medical’s investor relations manager and the company’s general information address weren’t returned.