SUN Fook Kong Holdings will allocate $90 million for the amount outstanding from the buyer of the Singapore construction subsidiary that Sun Fook Kong once owned. Sun Fook Kong Construction, a wholly owned subsidiary, sold its Singapore business to the company's former director and general manager, Fan Chun-wah, for S$17 million (about HK$93 million) to be paid in instalments. Early last month the company became aware that the Singapore firm of which it had sold encountered serious financial difficulties because of credit and cash flow problems. As a result it appointed independent accountants to review the firm's financial position. On the basis of the preliminary findings, application will be made to place the firm under judicial management. Judicial management is a process permitted under Singapore corporate law in which the affairs, business and property of a company are managed by a judicial manager appointed by the court.
