BEIJING , China ( CNN ) -- Sanlu Group , the company at the center of China 's tainted infant formula scandal , has filed for bankruptcy . Markets withdrew Sanlu milk powder in September after melamine was found as an additive . A court in Shijiazhuang , China , where the company is based , told CNN Wednesday it has received the bankruptcy application . Baby formula produced by Sanlu -- previously one of China 's leading dairy producers -- was first flagged in the scandal when it recalled about 700 tons of the powdered milk in September after discovering the product was contaminated with melamine . The poisonings killed six babies and sickened 290,000 others , according to China 's Xinhua news agency . Melamine is commonly used in coatings and laminates , wood adhesives , fabric coatings , ceiling tiles and flame retardants . Some Chinese dairy plants have added it to milk products to make it seem to have a higher protein level . Melamine is the same industrial contaminant from China that poisoned and killed thousands of U.S. dogs and cats last year . Health experts say ingesting melamine can lead to kidney stones , urinary tract ulcers , and eye and skin irritation . It also robs infants of much-needed nutrition . Sanlu could be taken over by Beijing Sanyuan Food Company or Wandashan Dairy , Xinhua reported . Chinese investigators found melamine in nearly 70 milk products from more than 20 companies , according to then-quality control official Li Changjiang , who was forced to resign . Thousands of tons of tainted milk powder were recalled , including pullbacks by Mengniu Dairy Group , China 's largest milk producer , and Sanlu . In addition to Li 's ouster , the fallout from the scandal led to arrest of at least 18 people in September and new government safety measures . New Zealand-based Fonterra , which owns a 43 percent stake in Sanlu , said the Shijiazhuang court issued the bankruptcy order against the Chinese company in response to a creditor 's petition . Under the court order , according to Fonterra , a court-appointed receiver will manage Sanlu and assume responsibility `` for an orderly sale of the company 's assets and payment of creditors '' within six months . `` This bankruptcy order is not a surprise to us , '' Andrew Ferrier , Fonterra 's CEO , said in statement . `` We were aware that Sanlu was in a very difficult situation and faced mounting debts as a result of the melamine contamination crisis . ''
Sanlu was one of China 's leading dairy producers . Some Chinese dairy plants added melamine to milk products to boost protein levels . Ingesting melamine can lead to kidney stones , eye and skin irritation , experts say . Official : Melamine was found in nearly 70 milk products from more than 20 firms .