According to an Associated Press report, a Chinese court has plans to auction off the assets of Sanlu Group Co., the company at the center of the melamine milk controversy last year.
A Chinese court plans to auction off the assets of the Chinese dairy at the heart of a tainted milk scandal that sickened hundreds of thousands of children and was blamed for killing six, reports said Saturday.
Sanlu Group Co. was declared bankrupt by a court in its north China base of Shijiazhuang on Thursday. Its real estate holdings, buildings and equipment will be auctioned March 4, along with its investment rights and interests in three other dairy companies, newspapers and the official Xinhua News Agency reported.
Fonterra, a New Zealand farmer-owned cooperative that owns 43 percent of Sanlu, has already written off its $139 million investment. Fonterra was responsible for alerting Chinese authorities about the tainted milk scandal last August.
