IBA seeks wind-up order against AWT for failure to repay $18m

PUBLISHED : Thursday, 11 March, 1999, 12:00am
UPDATED : Thursday, 11 March, 1999, 12:00am
 

Ailing freight forwarder and property investment firm AWT Holdings has been hit by a bankruptcy petition filed by International Bank of Asia (IBA) after allegedly failing to repay HK$18 million in loans.


An IBA spokesman yesterday said the petition was aimed at collecting the unpaid loans in the wake of 'many internal disruptions' at AWT.


'We don't think we were in an ideal position to negotiate repayment with the company as there is so much disruption going on,' he said, without elaborating.


IBA had already taken over a commercial property put up as collateral for the loans by AWT, he said.


Trading in AWT shares was suspended at the company's request yesterday, pending a statement on the bankruptcy petition.


The company last month said it was seeking to delay settling HK$189.9 million in outstanding claims.


AWT is the second debtor IBA has attempted to have wound up in recent months.


It took similar action in December against New China Hong Kong Group after the mainland-backed firm failed to repay US$1 million in debt.


AWT this week reported an unaudited attributable loss of HK$457.68 million for the year to March 31 last year, a fivefold increase from the previous corresponding period. It had postponed the announcement of the result three times.


The company made a further attributable loss of HK$34.41 million in the six months to September 30, on turnover of HK$191.70 million, 45.8 per cent and 38.7 per cent lower respectively than a year earlier.


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