China MediaExpress Holdings, Inc. (fka CCME)

[gunnar]

It does answer the question, if you are going to frame it that Starr's investment casts doubt on whether the company had the cash at the time. Starr would not have invested in a company that was lying in SEC filings, and yes, Starr verified the cash.

If you are asking why the company took the investment DESPITE having a large amount of cash, the best answer is that a) they wanted a strong U.S. backer after having to forego an IPO, and b) they were (rightly) concerned about the global and Chinese economies and figured they should take the investment since it was available.

The fact that Starr did months of due diligence, including hiring Nielsen Media to independently verify CCME operations and opine on the companies prospects in the ad market, AND brought Deloitte to do their own financial audit (at the time Deloitte was not CCME's auditor), should only reinforce your confidence in the company's cash position.