The latest rescue plan for insolvent Siu-Fung Ceramics has received support from most of its creditor banks - including HSBC - according to the company.
Chairman Siegfried Lee Siu-fung said yesterday: 'HSBC has expressed its support of the deal. It is expected the bank will withdraw its liquidation petition [on Siu-Fung].' Mr Lee said the plan was pending approval from the Securities and Futures Commission, with an announcement expected on Monday.
Earlier this week, Charles Yeung Chun-kam, chairman of fashion-chain operator Glorious Sun Enterprises, put forward his plan to rescue Siu-Fung.
Court proceedings on the wind-up petition filed by HSBC were adjourned on Monday because of the rescue proposal.
Under the restructuring plan, Mr Yeung will clear Siu-Fung Ceramics' $2.2 billion in debts with cash payments amounting to $70 million, representing a 'haircut' of almost 97 per cent on the outstanding amount.
Mr Yeung will also undertake to inject some cash into Siu-Fung as operational capital to resurrect the company.
