ShengdaTech Files For Ch. 11 Amid Securities Scandal

Law360, New York (August 19, 2011, 7:06 PM EDT) -- Shanghai-based chemical maker ShengdaTech Inc. filed for bankruptcy Friday in Nevada, saying it would fire all of its officers and restructure to try to recover from an accounting scandal.

ShengdaTech admitted March 15 that it had found “potentially serious discrepancies and unexplained issues” in its financial records, a disclosure that halted trading of the NASDAQ-listed company's stock and spurred several investor class actions.

The company, which is largely based in China but incorporated in Nevada, said in its Chapter 11 bankruptcy filing that it would appoint...
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