Ultrasonic Thursday said it was talking to creditors to determine whether a potential insolvency could be avoided after a $60 million bank loan was withdrawn in the wake of the disappearance of top executives.
Earlier this week the Germany-listed shoemaker said chief executive Qingyong Wu and chief operating officer Minghong Wu had been missing since the weekend, and most of its cash reserves in China and Hong Kong had disappeared.
Ultrasonic said a $60 million credit facility secured from Nomura International (Hong Kong) Ltd in August, was made due for repayment on Sept. 17, pulling the loan's due date forward.
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However, the creditors have agreed to enter into further negotiations with chief financial officer Chi Kwong Clifford Chan and the supervisory board of Ultrasonic AG to see insolvency can be avoided.
The supervisory board has formally dismissed Qingyong Wu and Minghong Wu from their posts, Ultrasonic further said, adding that CFO Chan has agreed to withdraw his resignation which was scheduled for Sept. 30 2014.
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