KLW Holdings has appointed PricewaterhouseCoopers (PwC) as special auditors to carry out a special review into the financial affairs of the company and some of its key subsidiaries.
It has asked PwC to determine the facts and circumstances surrounding the entering of the Bali Term Sheet, the Zhangye Hotel Term Sheet and the Zhangye Property Term Sheet.
It has also asked the auditors to review significant payments made for a specific period of time to establish whether there are any other similar unusual payments made during this period.
The commitment fee paid by KLW under the Zhangye Property and Bali term sheets have yet to be recovered. The total is $7.4 million, for which KLW has already made a provision.
KLW will announce a net loss for the year ended March 31.
Yamada Green Resources
YAMADA Green Resources said last Friday that one of its units has terminated the lease agreements it made with several villages in Zhangping City for the cultivation of shiitake mushrooms.
It will, however, expand the cultivation of moso bamboo trees and its bamboo-shoots business segment, which incurs lower labour cost.
It also terminated the lease agreements of eucalyptus plantations.