Fortuna hit by debtor's default blow

Fortuna International Holdings has raised fears its development will be hindered by Guangnan Hong (Group)'s failure to repay debt.

Vice-chairman and managing director David Chan Chuen-wing said Guangnan Hong owed Fortuna more than $30 million, of which about $8 million was past its due date.

'The amount will not cause problems to daily operations, but it affects some items that we wish to invest more in,' he told a special general meeting.

'Guangnan is undergoing restructuring and they need more time from us.' Guangnan Hong is a member of the struggling Guangdong Enterprises group and the holding company of insolvent red chip Guangnan (Holdings).

Fortuna - 20 per cent held by Guangnan (Holdings) - has interests in electronics, ostrich farming, wine-making and tannery operations.

The company sold its interest in electronics firm Firstone Investment to Guangnan Hong last year.

Fortuna last month said Guangnan Hong had yet to settle $8.94 million owed from that transaction due on December 31.