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Sanlu Group ordered bankrupt by court

(Xinhua)
Updated: 2009-02-12 14:02

SHIJIAZHUANG -- A Chinese local court declared Thursday the Sanlu Group at the heart of the country's milk contamination scandal goes bankrupt.

Related readings:  Former dairy boss in milk scandal appeals  China milk scandal dragged Yili Group into losses  Sanlu ex-boss gets life for milk scandal  Two in milk scandal sentenced to death, life imprisonment

The Intermediate People's Court of Shijiazhuang, capital of the northern Hebei Province, accepted the bankruptcy petition for Sanlu, who faced a 1.1 billion yuan (161 million US dollars) debt, last December.

Sanlu stopped production on September 12, after its melamine-tainted baby milk powder was found to cause deaths and kidney stone for children.

It was fined last month 49.37 million yuan by the Shijiazhuang court, which also handed down life sentence to Sanlu's board chairwoman Tian Wenhua.

On December 19, the group borrowed 902 million yuan to pay the medical fees of children sickened by its melamine-tainted baby formula and to compensate the victims.