Bank of China

Bank sues travel agency directors over $1b loans

PUBLISHED : Sunday, 18 August, 2002, 12:00am
UPDATED : Sunday, 18 August, 2002, 12:00am

Two directors of one of Hong Kong's biggest travel agencies are being sued for more than $1 billion.

The Bank of China (Hong Kong) Ltd has filed a High Court writ seeking the repayment of loans totalling $955,870,210, plus more than $500 million in interest, from Chan Yeuk-wai and Chan Yeuk-pun. The pair are directors and main shareholders of Ananda Enterprises Limited, formerly known as Ananda Wing On Travel (Holdings) Limited.

The writ says the company was granted two loans in 1996 and 1997 from the Kwangtung Provincial Bank, the predecessor of Bank of China (Hong Kong) Ltd. The two directors acted as guarantors of the loan.

In a separate action, the bank is seeking possession of Ananda Tower, Connaught Road, Central, which was mortgaged to the bank in 1996.

The travel agency last month announced a net loss of $653.75 million for the year to March 31. The year before it made $82.68 million.