Property investor Chinese Estates Holdings has posted a net loss of HK$378.83 million for last year, fuelled by substantial losses and provisions for its associate companies.
Chaired by Thomas Lau Luen-hung, Chinese Estates was in the red after making a HK$331.08 million provision for advances to associates.
It is believed some of the losses came from financially troubled property company Chi Cheung Investment, which Chinese Estates acquired in November through a HK$276 million debt-restructuring plan.
Chinese Estates swapped some of its property assets, valued at HK$216 million, plus injecting HK$60 million cash in exchange for a 66.89 per cent stake in the debt-ridden firm.
Chi Cheung said the debt-restructuring plan allowed it to eliminate about HK$819.7 million in outstanding debts, of which about 82.5 per cent, or HK$676.7 million, was converted into equity based on the proportion of indebtedness to each creditor.
As a result of the scheme, Chi Cheung booked a gain of HK$542.01 million, helping it to a profit of HK$591.83 million for the year to December 31, against its HK$257.8 million loss in 1999.