Ultrasonic CEO resurfaces in China, denies taking money

Credit lines

Nomura Holdings Inc and co-lenders had given the Frankfurt-listed shoemaker the $60 million unsecured credit facility to fund an expansion drive. Ultrasonic said last week that it had defaulted on the facility, and was in talks with creditors to try to avoid insolvency.

"The whole thing is one surprise after the next," said a source close to the lenders behind the Nomura-led loan, in response to Wu's reappearance. "They have seen the report and are thinking about what should be their next step."

Two sources on Monday said that China Construction Bank Corp had also made loans to Ultrasonic. A spokesman at the bank said he was not aware of the matter.

An official at the local public security bureau in Quanzhou declined to comment on the case.

Shares in Ultrasonic have dived more than 80 percent in the last week after reports of the scandal emerged.

In the video interview with Sina in Quanzhou, where the firm is based, Wu said he had been out of contact in recent days because he was in Hong Kong on vacation and in the Philippines for a medical check.

He added he had returned to China as quickly as possible after finding out about the rumours.

"I did not run away. Rumours around society and on the web are saying that I took the money and ran," Wu said. "My reputation and that of the company have suffered great damage, and I retain my right to prosecute those who spread this rumour."

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