Guangdong Enterprises (Holdings) (GDE) soon will reach an agreement with its 130-plus creditors on the US$5.59 billion debt-restructuring plan, according to a company official. 'Our negotiations with creditors progress smoothly,' Guangnan (Holdings) chairman Kang Dian said yesterday after the company's annual general meeting. 'We hope we can reach an agreement very soon.' Guangnan is GDE's Hong Kong-listed vehicle. Mr Kang is also vice-president at GDE and deputy chairman at Guangdong Investment, the listed flagship of GDE. He refused to give a timetable on GDE's restructuring, but banking sources said an agreement was expected before the end of next month. The debt restructuring of the Guangdong provincial government's insolvent flagship, which has dragged on for more than two years, has hampered Guangnan's business development. Guangnan, which reported a net loss of HK$194.21 million last year, has remained in the red for the first half of this year, but the loss has narrowed. Mr Kang said Guangnan would continue to cut costs in order to improve its results. Its supermarket operation in Guangzhou, which contributed substantially to losses last year, has been reduced from 27 stores to about 20. Guangnan also recently reshuffled senior management, Mr Kang said. The company is drafting a five-year business plan, focusing on food-related businesses. Mr Kang said the plan would be implemented after completion of the restructuring. Shares in Guangnan strengthened by one HK cent yesterday to close at 32 cents. Guangdong Investment shares finished four HK cents higher at HK$1.08.