The management reshuffle at state-owned Everbright Securities is continuing as the company’s failed takeover of a British media company looms large in several ongoing legal battles with its former investment partners.

Caixin has learned that Liu Qiuming, the current chairman and president of China Minsheng Investment Capital, a subsidiary of a private investment firm, is in line to become the new president of Everbright Securities after former President Zhou Jiannan left the company with the board chairman and the chief compliance officer.

In 2016, an Everbright Securities subsidiary joined a consortium that bought a 65% stake in MP & Silva Holding. But the investment soured as the U.K.-based sports-media company lost key contracts, saw its main dealmakers left for rival companies, and was finally declared bankrupt in 2018. The case reflected a common trend at the time whereby Chinese companies scrambled to acquire overseas businesses only for many of them to subsequently turn out to be duds.

Although the Everbright Securities subsidiary made a minority investment of 60 million yuan ($8.53 million) in the acquisition, it ended up owing about 3.5 billion yuan to two partners in the consortium due to leveraged arrangements. That cost the company substantial financial losses. As of the end of June, Everbright Securities had made nearly 1.7 billion yuan of provisions against its estimated liabilities related to the acquisition, according to an August exchange filing.

A previous version of this post incorrectly identified Everbright Securities’ former president. It is Zhou Jiannan. It also gave the incorrect year of his departure.

Read the full story on Caixin Global later today.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

Related: In Depth: How a Bungled British Deal Left Everbright on the Hook for $522 Million