Gitic Enterprises, the SAR-listed arm of the bankrupt Guangdong International Trust and Investment Corp (Gitic), is in imminent danger of being liquidated by creditor banks.
Chairman Mai Zhinan said the company expected it would not be able to repay borrowings of $56 million in accordance with an informal standstill agreement with creditors.
Creditor banks indicated they could be forced to initiate bankruptcy proceedings against the company if there had not been satisfactory progress in its restructuring before the end of this month, he said.
Mr Mai said a proposed buyout of the 58.66 per cent interest in the company held by its bankrupt controlling shareholder had fallen through.
The company had received a proposal from one of its directors to buy its marble-manufacturing business. The two sides had yet to enter any binding agreements.
The company would apply today for resumption of trading of its shares and warrants, suspended since October last year following the closure of Gitic.
