The last piece in Lai Sun Development's major debt restructuring jigsaw was put in place yesterday when eSun Holdings' shareholders approved the plan.
Already approved by the firm's bondholders last week, the plan would return the developer to positive net asset value of 18 cents per share while cutting its debt to about $3 billion from $7 billion in the middle of last year, Lai Sun director Keith Wu Shiu-kee said.
The debt restructuring programme involves a complex mix of cash repayments, new loans and debt-for-equity swaps.
Lai Sun's media and satellite-television associate, eSun, will need to write off $328 million, which is expected to be shown in its results for the six months to January next year, in order to help clear Lai Sun's debt.
Under the plan, eSun will hold 40.8 per cent of Lai Sun's enlarged capital, resulting in cross-holdings between the two companies.
'The gearing ratio of Lai Sun will drop to about one,' Mr Wu said after more than 90 per cent of eSun's shareholders approved the plan yesterday.