UDL subsidiary in $66m suit as winding-up hearing looms
Cash-strapped UDL Holdings was struck a further blow yesterday with a lawsuit claiming HK$66 million filed against a subsidiary just days before it goes to court to fight a liquidation bid.
The marine and civil engineering company will attempt to convince a judge on Monday that it can pay off creditors seeking to wind it up.
UDL Holdings and its subsidiaries have been hit by a wave of financial claims over the past few months, culminating in the bid by HSBC to have it liquidated.
A Bank of East Asia (BEA) writ filed against subsidiary UDL Kenworth Engineering, however, could compound efforts to convince the court of its ability to repay creditors.
UDL Holdings was given a reprieve by Hong Kong's companies judge last month when she refused to wind up one of its subsidiaries.
Madam Justice Doreen Le Pichon cited support by creditors to consider the option of restructuring 'rather than winding it up now and putting more people out of work'.
The BEA writ seeks HK$66 million from UDL Kenworth - resulting from an unpaid principal loan sum of US$6.5 million, interest of US$300,000 and a further sum of HK$13.3 million.
UDL Holdings and subsidiary Kenworth reported a joint HK$2.05 billion attributable loss in the year to March 31.
Kenworth suffered a HK$560 million attributable loss compared with a HK$52 million profit the previous year.