Swank International Manufacturing, which makes eye-glass frames, hopes to finalise in a month's time plans to restructure $1 billion in debt with 42 creditor banks, according to chairman Gerald Dobby. The company's share trading - frozen since the financial troubles came to light in March last year - would resume at the conclusion of the restructuring plan, he said. Despite refusing to disclose details of the plan, Mr Dobby confirmed some foreign banks might buy Swank's debts in exchange for a stake in the company. 'I hope the proposal will be finalised within the next four weeks,' he said after the company's annual general meeting yesterday. Swank, one of the world's leading makers of eye-wear in terms of volume, saw its financial health undermined by lens trading during the four years to March last year. Some of the trading was conducted without following prudent commercial procedures with Hanmy (Holdings) - a company linked to executive director Lam Yin-sang. The trading left $97 million owed to Swank by Hanmy. Trading with Hanmy was terminated in March last year. Mr Dobby said Swank was negotiating to buy Hanmy's assets - largely mainland properties - to settle about $62 million of debts owed to Swank. Due to limited evidence available for auditing and uncertainty surrounding Swank's debt restructuring, auditor KPMG Peat Marwick disclaimed its opinion on Swank's balance sheet last year. Swank reported a 40 per cent drop in attributable loss to $337.09 million in the year to December 31.
