Hwa Kay Thai satisifies creditors as third party provides $60m

PUBLISHED : Monday, 18 January, 1999, 12:00am
UPDATED : Monday, 18 January, 1999, 12:00am

Troubled Hwa Kay Thai Holdings announced arrangements involving repayment of loans worth $255 million.

The details revealed yesterday came more than a month after the company announced a financial restructuring under which independent third party Patrick Wong, through his wholly owned Shine United International, was to inject $60 million in return for about 57 per cent of the company.

The company said it intended to dispose of collateralised properties to repay $19 million in debt.

It said it and its subsidiaries also owed $236 million to creditors including principal bankers and Puma AG Rudolf Dassler Sport.

Those loans were lent without using any property as collateral.

It said some creditors had agreed to waive repayments together worth $130 million out of the $236 million. The balance would be repaid by cash, an issue of new shares and convertible notes.

After the restructuring, its principal bankers will own 10 per cent of the company and Puma will have 9.8 per cent.