SHANGHAI, Aug. 24, 2011 /PRNewswire-Asia-FirstCall/ -- ShengdaTech, Inc. ("ShengdaTech" or the "Company") (SDTH.NSDQ), a leading manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, announced today that the U.S. Bankruptcy Court for the District of Nevada granted the Company's motion for a temporary restraining order ("TRO") enjoining the Company's shareholders and the members of the Company's Board of Directors, from taking any action, including the commencement of any court or administrative proceeding that seeks to change or has the purpose or effect of changing the composition of the Company's Special Committee or the appointment of the Chief Restructuring Officer ("CRO"), Mr. Michael Kang, from taking any action including the commencement of any court or administrative proceeding that seeks to hinder, obstruct, impede or otherwise interfere with the Special Committee's and the CRO's previously announced investigation(s) and prosecution of the Company's Chapter 11 case, and from taking any action that seeks to appoint or has the purpose or effect of appointing Mr. Gongbo Wang, or anyone else, to the Company's Board of Directors. The TRO is in addition to the automatic stay imposed by Section 362(a) of the U.S. Bankruptcy Code.
The TRO shall remain in place until conclusion of the hearing on the Company's request for a preliminary injunction, which hearing is currently scheduled for September 2, 2011.
Additionally, on August 22, 2011, the SEC served the Company with a subpoena for documents in connection with a fact-finding investigation by the SEC with regard to the Company. The Company is committed to cooperating with the SEC. It is not possible at this time to predict the outcome of the SEC investigation, including whether or when any proceedings might be initiated, when these matters may be resolved or what, if any, penalties or other remedies may be imposed. The SEC has informed the Company that the investigation should not be construed as an indication that any violations of law have occurred.