• Tue
  • Sep 23, 2014
  • Updated: 6:00am

Sumitomo files $20m writ

PUBLISHED : Saturday, 22 August, 1998, 12:00am
UPDATED : Saturday, 22 August, 1998, 12:00am

Troubled construction company Tak Wing Investment (Holdings) faces court action over an alleged $20.4 million debt with Sumitomo Bank.


The company had failed to pay the sum, owed as an overdraft with the bank since August 4, according to a High Court writ.


Sumitomo was also seeking to recover further interest on the outstanding sum at the rate of 2 per cent per annum, the writ said.


The bank was also asking for costs of the action and any other relief deemed fit.


Tak Wing suffered consolidated losses of $326.35 million last year after taxation and minority interests. This was in contrast to a $26.42 million profit in 1996.


Turnover also dropped last year from $695.11 million to $202.01 million.


The company's borrowings as of April 30 this year came to about $351 million, mostly secured by cash deposits or pledges of properties.


Tak Wing's controlling shareholder, Chung Chun-keung, recently announced he had entered into a letter of intent regarding the possible sale of his 47 per cent interest in the firm.


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