(Yicai Global) Sept.24 -- Toronto-based charity Li Ka Shing Canada Foundation has recently filed an involuntary bankruptcy application against Cao Zhong, the chairman of Hong Kong-headquartered FDG Electric Vehicles.

Cao is unable to repay the guaranteed amounts of principal and interest and, as of July, was HKD119 million (USD15.2 million) in arrears, and the foundation has therefore petitioned for his involuntary bankruptcy, the company stated in a terse Sept. 22 filing with Hong Kong Exchanges and Clearing that revealed no other details.

The company has not yet obtained enough information about the petition from him to analyze its impact, however, it informed the bourse.

As FDG's board chairman, Cao has three entities under his sway, FDG Electric Vehicles, FDG Kinetic and China Resources and China Resources and Transportation Group, all headquartered in Hong Kong. China Resources and China Resources and Transportation is the defaulting firm, media reported. 

FDG Electric Vehicle's shares [HKG:0729] plunged 29.33 percent at yesterday's opening and slipped another 6.42 percent at today's to HKD0.248. FDG Kinetic [HKG:0378] fell 30 percent at the start of yesterday's trading but rebounded to end up down 2.13 percent at HKD0.048 at this morning's close.

FDG Electric Vehicle's core business is research and development, design, production and sales of pure electric vehicles, and production and sales of cathode materials for lithium-ion batteries and lithium-ion batteries, public information shows.

Li Ka Shing Canada Foundation spent about HKD340 million to increase its stake in FDG Electric Vehicle in 1999, when its total shareholding ratio reached 7.96 percent to make it the fourth-largest shareholder. Its holding thereafter dropped off to 4.93 percent in 2016.

Founded in 1980 by Hong Kong entrepreneur Li Ka-shing, the foundation is the second-largest private one led by a wealthy individual in the world after Bill & Melinda Gates Foundation.

Editor: Ben Armour