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IPO

Swilynn's listing the catalyst for trouble

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THE problems at Swilynn (Hongkong) stem largely from a string of acquisitions and expansions begun soon after it listed in April 1989.

The company adopted the Bermuda-incorporated Swilynn International holding company structure later that year.

Swilynn (Hongkong) has since then essentially been a holding company but has ended up lumbered with some of the group's most troublesome debts, mostly to non-bank trade and other creditors.

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The year after it first listed was one of expansion for the ambitious group, under the stewardship of chairman Ngan Ping-woon.

In July 1990 it launched a cash offer for troubled television, audio and telecommunications company Teletech International, eventually building a 89.37 per cent stake for an outlay of about $500 million.

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Most of that holding has since been sold at a massive loss.

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