Investor Presentaiton
China Aviation Oil, Singapore
China Aviation Oil (CAO) faced near collapse in late 2004 due to losses of
more than US$500m from risky trading in oil derivatives. Shares suspended
in November 2004.
In June 2005, creditors approved a debt restructuring. The company
formed a special committee to advise on corporate governance issues.
In late February 2006, former finance chief, Peter Lim, was jailed for two
years and fined $$150,000 for making false and misleading statements
about the trading losses.
In early March 2006, three mainland directors, Jia Changbin, Gu Yanfei
and Li Yongji, were fined S$150,000 each for intentionally failing to notify
SGX about the the trading losses. Jia fined an additional S$250,000 for
insider trading.
Chen Juilin, former CEO, was sentenced to 4.25 years in jail and fined
S$335,000, for conspiring to cheat, failing to notify SGX of CAO's losses,
making false and misleading statements, breaching his director duties and
insider trading.
CAO shares resumed trading in late March 2006 with a new
(independent) chairman and a new board, including new independent
directors.
ACGA Presentation
HKCCA, May 6, 2009
9
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