NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its chairman is being sued for over $220 million of unauthorized loans, resulting in banks freezing NetPosa cash and shares. This all comes as the PRC government recently became NetPosa's controlling shareholder.
Inside this note, we examine the crisis at NetPosa, including:
- NetPosa Background
- Accounts Receivable Explode Amid Government Debt Crackdown
- Stocks and Cash Frozen
- Internal Investigation Reveals Massive Unauthorized Loans
- PRC Government Takeover
- Conclusion: Will NetPosa Survive?