Liquidators pursue Peking Founder’s assets in Hong Kong after ‘keepwell’ storm as US$11.3 billion bailout plan progresses
- Assets include a 60 per cent stake in Hong Kong-listed Peking University Resources and property projects in mainland China
- Beijing court this week approved bankrupt Peking Founder’s US$11.3 billion rescue plan by a Ping An Insurance consortium
Derek Lai Kar-yan, one of the court-appointed liquidators for Founder Information (Hong Kong), said he is trying to raise cash by selling assets in the city and mainland China to repay creditors. They include holders of the defaulted US$300 million 4.575 per cent 2020 notes issued by a unit of the university’s business arm.
Founder Information, which guaranteed several tranches of dollar and euro-denominated bonds, owns 60 per cent of Hong Kong-listed Peking University Resources Holdings, a stake worth about HK$616 million (US$79.3 million). Other valuable assets include its investment and development properties in mainland China.
“We will take action to sell the assets very soon,” Lai, who is also the vice-chairman of Deloitte China, said in an interview with the Post. “Liquidating assets in Hong Kong could start within this month. This is to protect the interest of creditors because there is no certainty that their debt will be repaid.”
The liquidators won a court order in late May to sell the 60 per cent stake in Peking Founder Resources by private tender. Last month, they requisitioned to remove three directors at the company and appoint its four nominees to the board.