Write off dominates China Bio's 3rd qtr

Beijing-headquartered China Biopharmaceuticals says that its loss for the third quarter of 2007 was $822,000, up 51.7% on the deficit it posted in the comparable period last year. The firm said that the increase was largely attributable to higher payments and interest accrued on a loan it took out with RimAsia Capital Partners for its acquisition of Shenyang Enshi Pharmaceuticals last year (Marketletter July 17).

However, during the quarter China Biopharmaceuticals said it had incurred a $10.8 million charge related to the write off of Enshi. The firm added that it has commenced legal proceedings for recession and damages against Li Xiaobo, Enshi's previous owner, for the alleged breach of representations, warranties and fraud. The company expects to prevail in the case and that the recovered value will cover RimAsia's debt.