Aegean white knight offers $50m bailout

PUBLISHED : Thursday, 05 June, 2003, 12:00am
UPDATED : Thursday, 05 June, 2003, 12:00am

Work on the Aegean residential project will be resumed if the receiver of its failed developer accepts a $50 million rescue package offered by a securities company.

The offer by Karl Thomson company was revealed yesterday by Gold-Face Holdings, the parent company of Profit Nations which developed the Aegean project in Tuen Mun. Profit Nations was placed in receivership under accountancy firm Ernst & Young last month.

So far 29 units in the Aegean have been pre-sold for a total of about $30 million. But the remaining construction requires at least $50 million to finish.

Gold-Face Holdings yesterday issued a statement saying that the offer would be made effective immediately once the receiver agreed.

Similar arrangements are also being made to settle a small amount of unfinished work on the Villa Pinada sister project in Tuen Mun, the company said.

'We will do our best to finalise this arrangement and an international auditing firm will be appointed this week to supervise the use of the extra funding,' a spokesman for Gold-Face Holdings said.

Under the Aegean rescue package, Gold-Face would pay interest on the $50 million loan at a monthly rate of 2.5 per cent.

Repayment has to be completed in 12 months.

Karl Thomson will also be offered a share-buying option which, if realised, would make it the biggest shareholder of Gold-Face, owning 55 per cent of the company.

The Commercial Crime Bureau arrested two top executives of Gold-Face and its subsidiaries for alleged fraud on May 28.

Both have been released on bail, pending further investigations.