Wing Fai steps up battle for payments as turmoil takes toll

Construction contractor Wing Fai International is struggling to recoup about $80 million in bad and doubtful debts, as many of its debtors have gone bankrupt.

Chief executive Robert Yip Kwong said the company had exposure to about 11 debtors that had acted as sub-contractors two years ago.

He said the problem stemmed from loose credit control before he took charge of the company in February.

'The former management was good at bidding and subcontracting, but not credit control,' he said after the company held a special general meeting yesterday.

During the meeting, shareholders approved the motion of renaming Wing Fai as China Rich Holdings.

Mr Yip said the company had stepped up efforts through civil suits to recover debts and had tightened lending.