China Rare Earth Holdings Limited $(CRE.UK)$ has announced the establishment of an independent investigation committee following a complaint from an employee of one of its subsidiaries in mainland China. The complaint alleges potential misappropriation of assets, leading to significant debt accumulation and frequent visits from banks and suppliers. The company has engaged legal advisers to conduct due diligence on two subsidiaries, Yixing Xinwei Leeshing Refractory Materials Company Limited and Yixing Xinwei Leeshing Rare Earth Company Limited. Investigations revealed these subsidiaries are embroiled in several lawsuits, with debts potentially exceeding their paid-up capital. Additionally, they have been placed on the list of executors and face consumption restrictions in China. Trading of CRE's shares remains halted as the investigation continues.