Englong plans restructuring to resolve liquidity problems

Directors of Englong International say the loss-making property developer is suffering cash-flow difficulties and is drawing up a restructuring plan to resolve liquidity problems.

The plan, which they said was 'expected to address the company's liquidity concern,' was likely to involve the sale of properties and a potential placement of shares to outside investors.

In the 1994 year, the company suffered an attributable loss of $33.9 million. It off-loaded what it described as 'non-growth textile garment manufacturing operations' early last year but that did not help arrest the losses.

It reported a $20.4 million loss at the interim stage. As a result, Englong's share price has fallen about 61 per cent since the start of the year.

Englong has been suspended from trading since May 15 when it closed at $1.45 - nearly its low point for the year. It will hold a board meeting next Thursday to approve the unaudited 1995 year-end results.