Capital Asia - which owns 41.39 per cent of failed financial services firm CA Pacific Group (CAP Group) - is trying to reach a standstill agreement with its creditors to prevent it from collapsing.
Chairman Alex Wong Ching-ping said the company had called a meeting with creditor banks yesterday to discuss the possibility of a standstill agreement.
The call was made after it was told several creditor banks had temporarily suspended credit facilities while others were demanding repayment of outstanding loans.
'In the event that the company cannot reach a standstill agreement with its creditor banks, the board believes the company will not have sufficient working capital for its existing business operations,' Mr Wong said.
Capital Asia has appointed auditor Ernst & Young as financial adviser to review its financial position.
A preliminary assessment showed the company's maximum exposure to its margin-financing arm CA Pacific Finance and brokerage CA Pacific Securities - both of which are under liquidation - was $236.27 million.
Its unaudited net asset value as of September 30 was $685.33 million.
