The Pope AM deal shows that shareholders have to take action if they want to get some money back. Pope got a legal claim because the company violated a court order. With that claim, Receiver Seiden was able to step into the "shoes of the company" and obtain a settlement.
My guess is that the SGTI has violated other security laws – for example the election to the board of directors – that the remaining US shareholders (some 4 M shares) could use to get a legal claim. The best way seems to be via a class action in a Nevada court. That's the way choosen by SCEI's shareholders. SGTI's Ceo seems to have less criminal energy than SCEI's. He appears willing to settle if he gets kicked.
Pope had 1.802 M shares, got $3.7M. Fees to the receiver : $550k
That raises the question how retail investors can profit from that. I my view, the retail investors, by bundling their interest, could use the same path.
From the article (abbreviated):
Mr. Seiden, a court-appointed receiver …reached his first settlement last week, for $3.7 million, with Shengtai Pharmaceutical Inc., which had previously failed to comply with a court judgment.
Under the settlement finalized last week, Shengtai, which makes starch and glucose products for use in pharmaceuticals, agreed to pay $3.7 million to buy back the stake held by its major outside shareholder, Pope Investments LLC
Shengtai was never accused of accounting fraud, but it had ignored a 2014 Delaware Chancery Court judgment ordering it to open its books to Pope, after Shengtai’s chief executive withdrew a going-private offer and Shengtai gave up its registration to trade on U.S. exchanges.…
Mr. Seiden said his strategy is to capitalize on a structure Chinese companies often use to get around their government’s restrictions on foreign investment. In a number of the cases under Mr. Seiden’s purview, the corporate entities that owned the companies’ China-based operating assets were actually owned by subsidiaries located outside China, in areas like the British Virgin Islands or Cayman Islands.
The 52-year-old receiver used his authority to work through those regions’ courts to gain control over the subsidiaries. With Shengtai, the subsidiary, Shengtai Holding Inc., was based in New Jersey. That enabled him to go into China not as a foreign creditor who could be brushed aside but as the assets’ legal owner. “You’ve got to go in standing in the shoes of the company,” he said. With Shengtai, Mr. Liu signed an agreement with Mr. Seiden last November to work toward a settlement, according to court papers.
Thanks for digging that out.
The judge clearly thinks that Su harmed VTG. Su repeatedly mislead VTG's management for his own advantage and breached his fiduciary duties, according to the judges opinion. The company has very good chances to get some shares back. But that isn't the company main concern currently.
BTW: In the recent PACD presentation, the Zonda's delivery is likely to be postponed until 2017. I guess we will see more delivery shifts from 2016 into 2017.