New Sparkle Roll International Group Limited Faces Scandal, Seeks Temporary Liquidation

Recently, New Sparkle Roll International Group Limited (Stock Code: 00970) found itself embroiled in controversy, as the company was accused of fraud. On Monday (April 22nd) night, the company announced that it received a suspicious document that is believed to be intentionally leaked by insiders from the Hong Kong regulatory authorities. This document could potentially help certain accused criminals escape legal and criminal investigations. The Securities and Futures Commission issued a statement late at night, confirming that it is investigating the allegations and that an employee involved is no longer in their position. Though details are still under investigation, the company emphasized that it takes this matter very seriously.

It is reported that the confidential document involves the regulatory authorities' ongoing investigation into a group suspected of participating in a fraud scheme. This scheme involves prompting and misleading the company into issuing three tranches of convertible bonds on February 9th, February 23rd, and March 9th, 2021.

To protect the interests of the company and its shareholders, and to ensure ongoing operational capability and integrity, Sun Yao Lai applied to the Bermuda Supreme Court on April 15th for the appointment of joint provisional liquidators. Subsequently, the Bermuda Court appointed Edward Willmott and Elizabeth Cava of Deloitte Financial Advisory Ltd., along with Ka Yan Lai and Kwok Leung Ho of Deloitte Touche Tohmatsu, as the joint provisional liquidators.

Sun Yao Lai reiterated that the joint provisional liquidators will focus on maintaining the company's operations, overseeing related complaints, and investigations. The company stated that this move is not for a debt restructuring, nor does it imply damaging any regulatory body's criminal investigation.