A court has declared bankrupt the dairy at the center of China's deadly tainted milk scandal, one of the firm's owners said - a development lawyers said adds to concerns about how and when those sickened by the doctored products will be compensated.
A court in Shijiazhuang has issued a bankruptcy order against Sanlu Group Co. in response to a petition from a creditor, New Zealand's Fonterra Group said Wednesday. Fonterra owns 43 percent of Sanlu.
The official Xinhua News Agency said the court in Hebei province accepted the filing. Xinhua, citing a spokesman for the company, also said Sanlu confirmed its bankruptcy. Phones rang unanswered at the company and the court on Wednesday.