Lai Sun Development is in the final stage of mapping out a restructuring proposal that could reduce its debt to HK$5 billion from HK$9 billion.
A formal proposal would be presented to creditors early next month, said Mark Lee Po-on, director of parent Lai Sun Garment (International).
Lai Sun Development had received initial support from creditors, he said, adding that a big improvement would be seen as the proposal could help to cut its borrowing by more than 40 per cent to HK$5 billion.
The company had targeted the HK$5 billion debt level after taking into consideration the cash generated from the sale of Furama Hotel in Central for loan repayment, he said after the group's extraordinary general meeting yesterday.
Lai Sun Garment deputy chairman Lam Kin-ming also attended the meeting, in which shareholders approved Lai Sun Development and Lai Sun Hotels International to form a joint venture to acquire 50 per cent of ATV.com for HK$300 million.
Mr Lee said Lai Sun Development should not make further provisions for selling the Furama, given the interim result had fully covered the diminution in value of the disposal.
