Ailing jewellery retailer Tse Sui Luen Jewellery International has disclosed the identity of its white knight as Wong Wan-kwong, one of its suppliers.
Tse Sui Luen, burdened with $900 million outstanding debts on February 28, said Mr Wong, through his wholly owned East Giant Investments Holdings, would subscribe to new shares in the company equivalent to 16.6 per cent of enlarged share capital.
Mr Wong's private company, Wong Wan-kwong Jewellery, supplies jewellery products to Tse Sui Luen and is owed $700,000 by Tse Sui Luen.
East Giant will subscribe to 78 million new shares at 25 cents a share, or a 4.17 per cent premium to the closing price on September 9, the last trading date. Tse Sui Luen is expected to resume trading today.
The proceeds of $19.5 million will be purely used as working capital.
Tse Sui Luen said it was still in talks over a rescheduling of its debts.