Construction firm Kumagai Gumi (Hong Kong) has decided against proceeding with its part in the $800 million bailout of troubled Siu-Fung Ceramics Holdings and its controlling shareholder Siegfried Lee Siu-fung. China Everbright International associate Kumagai was to have paid $470 million for 2.35 billion shares in Siu-Fung at 20 cents per share. It was not known whether the other parties in the bailout group - China State Bureau of Light Industry and Beijing First Light Industry Group - would also pull out of the deal. The Hong Kong construction company said it was cancelling because of Siu-Fung's failure to execute a debt restructuring agreement with its creditors before September 1. Kumagai was asked to relax this requirement in the interests of achieving a successful completion to the deal, the firm said. However, Kumagai had become aware of 'unforeseen circumstances which could adversely affect the financial condition of the Siu-Fung group and make the subscription less attractive'. Kumagai had paid no consideration in connection with the agreement.