Textile merchant and politician Kenneth Fang is to become chairman of beleaguered liquid crystal display (LCD) maker Yeebo (International Holdings) once a proposed debt restructuring and share offer have been completed.
Yeebo is suing a number of former directors for alleged fraud after reporting a loss of $80 million for last year.
The company has proposed a consolidation of one share for every 10 existing shares as well as issuing 158 million new shares at $1 a share.
Shareholders can subscribe for two new shares for every seven consolidated shares they own.
The offer price of $1 represents an 80 per cent discount to the closing price of 50 cents on March 19 before the shares were suspended.
The offer would increase Yeebo's share capital 3.5 times.
The $158 million raised will be used to repay banks, to which Yeebo owes $261.1 million. The balance will be turned into a five-year term loan.