October 4, 2011
US AgFeed Industries inquires about Chinese farm's accounting
AgFeed Industries Inc.'s board of directors has developed a special committee to inquire about accounting concerning a particular company whose Chinese farm assets that were acquired in 2007 and 2008, and were used in its hog production business.
They will also investigate the validity and collectability of the company's account receivables connected to its animal nutrition business in China and any other issues that may arise during the course of the investigation.
Members of the special committee include directors Milton Webster, III and newly appointed director Bruce Ginn. The special committee is authorised to retain experts and advisers to carry out its investigation and has engaged Latham & Watkins LLP to serve as its independent counsel in connection with the investigation.
The company said it will not provide further comment regarding the matters under investigation until after the special committee concludes its investigation.