Sundance requested a trading halt yesterday, citing it was seeking verification that its suitor was able to meet current timeline under the scheme of arrangement.

Finalisation of the scheme meeting is slated for June 7. But doubts over Hanlong’s ability to gain a large Chinese partner in order to secure the necessary takeover funding may further delay the protracted deal.

In its request for the trading halt, Sundance said Hanlong had not yet finalised discussions with potential large Chinese partners, a requirement set out by China’s National Development and Reform Commission.

As a result, Sundance has been advised by Hanlong that it is unlikely to be in a position to deliver the credit-approved term sheets by March 26, as required under the SIA.

Adding further fuel to speculation are media reports out of China yesterday alleging Hanlong chairman Liu Han was detained by Chinese police along with his ex-wife for an unknown reason.

Sundance drew attention to this in the request, confirming it was “seeking information” from Hanlong regarding the media speculation concerning Han.

In the absence of an agreed extension, a failure by Hanlong to achieve delivery of the credit-approved term sheets would trigger a five business day good faith consultation period.

This would be followed by a 10 business day termination period in which Hanlong and Sundance would terminate the proposed transaction.

While Sundance’s shares will remain in suspension until April 8, Sundance plans to update the market on any developments that may surface throughout the period.

According to Bloomberg, both parties are scheduled to meet in Perth later this week to discuss matters.

The proposed transaction between the parties has been in the works since Hanlong first announced its intention to acquire Sundance in July 2011.

The deal was set to draw to a close last December, but it was further delayed after Hanlong was unable to secure financing in time for a shareholders meeting due to take place on December 14.

Shares in Sundance have been on a downward slide on the back of continued delays to the takeover.

Sundance was trading at 38c at the beginning of 2013 but shares hit 21c before the company entered into a halt.

Sundance’s key project is the Mbalam iron ore project is on the border of the Republic of the Congo and the Republic of Cameroon. It is expected to produce 35 million tonnes of direct shipping iron ore for the first 10 years.