Lai Sun Garment (International) will book an estimated gain of $2.29 billion from the re-organisation of its troubled property arm, Lai Sun Development. Lai Sun Development's net asset value will return to positive after the restructuring while the dilution of Lai Sun Garment's interest in the unit constitutes a disposal, according to accounting policy. Lai Sun Garment said its equity interest would be diluted to 12.4 per cent from 42.25 per cent after Lai Sun Development's debt-for-equity swap. The restructuring, which also involves a complex mix of cash repayments and new loans, will give Lai Sun Development pro forma consolidated net assets estimated at $2.27 billion. At the end of January, it had an unaudited book value of minus $480 million. As of June last year, its debt burden was $7 billion. Director Keith Wu Shiu-kee said the restructuring was subject to the approval of bondholders and shareholders. A meeting with bondholders will be held on October 6, a week before a shareholders meeting. Mr Wu said he believed most bondholders would support the proposal while 'shareholders are believed to back the restructuring as it is totally of benefit to them'. As part of the restructuring, the developer will issue 3.8 billion new shares and $300 million in cash to bondholders.