Hmm ,maybe Zhao took out a big loan from CITIC to ensure the hapless PUDA shell holders (that's the longs here in the US) would get nothing cuz everything owuld first be owed to CITIC (cut and paste from PUDA's most recent annual, bottom of pg 17)?:

Because virtually all of our assets are held by our operating subsidiaries, the claims of our shareholders will be structurally subordinate to all existing and future liabilities and obligations, and trade payables of such subsidiaries. In the event of a bankruptcy, liquidation or reorganization of the Company, our assets and those of our subsidiaries will be available to satisfy the claims of our shareholders only after all of Putai and its subsidiaries’ liabilities and obligations have been paid in full.

Notice this part:
"...the claims of our shareholders will be structurally subordinate to all existing and future liabilities and obligations..."

Ouch for the longs if in fact CITIC gave that big loan to Shanxi.
Looks like it would help ensure there's almost nothing left for US PUDA company shell holders if Shanxi owes CITIC that gawdawful loan amount at 10%+ interest.

Might explain why CITIC would give the loan in the first place? Dunno. Wonder if the SEC might investigate CITIC too. Probably owuld be too contentious.

Just my personal thoughts and nothing else.

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