A WRIT for nearly $298 million has been issued against ITC Corp by liquidators acting for Hoi Sing Construction, which collapsed last year.
Nelson Wheeler Corporate Reconstruction and Insolvency said the writ, for $297,441,443, covered a sum owed by Hoi Sing Builders, a former fellow subsidiary of ITC that is also in liquidation.
'We consider that the repayment of the monies due to Hoi Sing Construction by Hoi Sing Builders was guaranteed by ITC,' the liquidators said.
ITC is part of Paul Y-ITC, one of Hong Kong's largest contractors with profits last year of $303.6 million on turnover of $7.457 billion.
Business tycoon Li Ka-shing and his son Richard Li Tzar-kai have interests in Paul Y-ITC through Cheung Kong (Holdings) and Hutchison Whampoa which hold more than 10 per cent of the contractor.
David Kennedy, of Nelson Wheeler Corporate Reconstruction and Insolvency, said further cash advances could have been made to Hoi Sing Builders.
