China Ocean Resources, which listed its stocks in South Korea in 2009, is on the verge of being kicked out of the Korean bourse as it has been accused of posting false public disclosures and using opaque accounting practices.
In a regulatory filing, China Ocean Resources said the petition, filed with the Seoul Southern District Court, seeks an injunction for Korea Exchange to halt the delisting procedure.
Earlier this month, Shinhan Accounting Corp. said it could not "rationally judge" the financial status of China Ocean Resources due to its false disclosures.
Last month, the Financial Services Commission, South Korea's top financial regulator, reported the chief executive of China Ocean Resources, Zhang Huoli, to prosecutors on allegations that he falsified public disclosures.
The alleged motive was to lower the company's stock price to attract more investors seeking to buy cheaper stocks, according to the regulator.
The Korea Exchange plans to hold a meeting by Sept. 12 to decide whether or not to delist shares of China Ocean Resources. (Yonhap)