Troubled property developer and financial services company Pearl Oriental Holdings yesterday strenuously denied it was having operational difficulties. 'We have had no banks recalling loans . . . nor do we have a need to increase our bank financing to raise capital,' chairman Wong Kwan said after the company's annual meeting. Mr Wong said the company needed to lower its borrowings and would do so by selling some of its property assets. He said the company had received several offers for the Pearl Oriental Centre, in Wan Chai, which it almost sold last year. The company is suing Xin Hua Properties for defaulting on a purchase agreement for that property last year. Mr Wong said it was also planning to sell the Pearl Seaview Hotel in Yau Ma Tei. Pearl Oriental is applying for leave from the courts to pursue action against a decision by the stock exchange to block Pearl's bid to set up a stock brokerage. Pearl Oriental said that, as of December 31, it had total liabilities of $1.72 billion, of which it had current liabilities of more than $969 million. The company had $216 million in cash and bank balances, while managing a turnover of only $468.5 million last year. A lone bright spot is Pearl Oriental's loan receivables held through subsidiary Margaux Finance. It lists $915 million of outstanding loans - although it also includes a $425 million loan to an associated company - as money it will recoup this year.