Peace Mark serves writ on directors

PUBLISHED : Friday, 27 November, 2009, 12:00am
UPDATED : Friday, 27 November, 2009, 12:00am
 

Collapsed retailer Peace Mark (Holdings) has issued a writ against some of its directors, taking action as liquidators seek to restructure the company.

The writ was issued on Wednesday in the High Court and levelled a wide range of claims against 12 defendants, including former chairman Patrick Chau Cham-wong, chief executive Leung Yung and chief financial officer Kevin Tsang Kwong-chiu.

Peace Mark is claiming compensation after alleging that one or more of the defendants had made omissions in direction or management.

Peace Mark celebrated its 25th anniversary in 2008 and claimed to be the largest luxury watch retailer in Asia after acquiring Singapore-based Sincere Watch. But it fell into provisional liquidation later in the year. Earlier this month it announced that Sincere was no longer one of its assets following a conditional cash offer.

A winding-up petition for Peace Mark was adjourned from August 31 to December 7. The order was first issued in September last year and its prolonged extension has given the company more freedom to negotiate the sale of its remaining assets.

'Peace Mark is still listed in Hong Kong and the listing is of potential value to investors interested in restructuring the company,' said Nick Gronow, an executive director at Ferrier Hodgson, an appointed provisional liquidator of Peace Mark.

Peace Mark has worked with potential investors for a restructuring of the holding company, resulting in the signing of an escrow and exclusivity agreement with one investor, Gronow said.

The liquidation of Peace Mark began at the end of last year and is still not yet close to conclusion.

'Peace Mark is fairly complicated because there are over 300 companies in their group,' Gronow said. 'It's fairly extreme and more complicated than the average liquidation.'

Lovells, solicitor for Peace Mark in the writ, declined to comment.

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