Infrastructure company Wai Kee Holdings has tabled a rescue plan for i-China Holdings in an $89.87 million deal which will turn the near-bankrupt firm into a construction flagship.
The white knight is offering a package of cash and construction assets in exchange for 75 per cent of i-China, formerly Seapower International Holdings, which is in the hands of provisional liquidators and entering the final stage of delisting.
The rescue plan, if implemented, will result in a 96 per cent 'haircut' of debts, which means creditors will be able to recoup only $22 million in cash from $545 million of debts.
It will also result in resumption of trade in i-China's shares, which have been suspended since January 15 last year.
Wai Kee, which has interests in construction, quarrying, toll roads and biotechnology ventures, aims to create a construction flagship through the reverse takeover of i-China.
According to a Wai Kee statement, its offer was a combination of $29.87 million in cash and its entire portfolio of construction businesses worth $60 million.
The valuation of the portfolio, composed of civil engineering projects for the public sector in Hong Kong and Taiwan, represents a premium of 69 per cent to the net tangible asset value at the end of last year or a 5 per cent premium as of June 30 this year.