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.