June 30 -- Guangxia (Yinchuan) Industry’s (000557) bankruptcy reorganization proposal was rejected by its shareholders yesterday, reports China Business News. According to the proposal, the company’s parent, Zhejiang Changjin Industry, would have been required to transfer 70 percent of its holdings. Shareholders with more than 500,000 shares would have been required to transfer 18 percent holdings and those with less than 500,000 shares would transfer 12 percent.

An investor with 300,000 shares in the company who voted against the proposal said medium and small shareholders did not reject the proposal for the transfer percentage required, but for doubts about the reorganizer, Ningxia Ningdong Railway, and hope the listed company would seek a more powerful reorganizer. The largest claimer to Guangxia, Beijing Nine Knowledge Management Consulting, announced on June 26 that it would not accept the listed company’s reorganization proposal and had recommended another potential reorganizer. Nine Knowledge cleared that it never required the listed company to repay in cash.

Guangxia pledged that Ningdong Railway will provide 320 million yuan cash to support it and inject four billion yuan worth of quality assets into it after the reorganization.