China State Construction’s US Unit Faces Fraud Probe Call (1)

A creditor to an overseas arm of China’s largest construction company is asking a US bankruptcy court to help investigate whether the firm may have committed fraud.

China Construction America Inc. filed for Chapter 11 in New Jersey last month. The company is a subsidiary of state-owned China State Construction Engineering Corp.

The largest unsecured creditor of the case, BML Properties Ltd., wants the court to appoint an examiner to look for potential fraud and misconduct, according to a motion filed on Thursday. The request comes after CCA in October was ordered to pay $1.6 billion to BML, ...