Hooker ‘has assets’

Press, 28 July 1989, Page 14

Hooker ‘has assets’

NZPA-AAP Sydney The Hooker Corporation, forced into liquidation on Wednesday, has the assets to wipe out its estimated sAust2 billion (SNZ2.6B) debt, the company chairman, Mr George Herscu, said yesterday. The sale of the property company’s assets in America would help pay the debt, he said in a radio interview. “Hooker has got rich assets,” he said. "Hooker does not have to sell in a fire sale. “Hooker can continue its business with a little injection of money.” Mr Herscu was concerned, however, that shareholders would be harmed by receivers selling off assets in a hurry. He said more than 20,000 people would be directly affected by the collapse of the company. Mr Herscu said between

13,000 and 14,000 small investors would see only a fraction of their original investment after liquidators sell off their assets. Another 8000 employees would be left without a job. Mr Herscu said he would personally lose an estimated sAust2soM (SNZ324M). However, proceeding with liquidation in an orderly manner rather than embarking on a “fire sale” would minimise the loss, he said. "I’m afraid that in five minutes they’ll dispose of everything and realise nothing.” He said he had an agent in the United States who was in the process of selling Hooker assets. On Wednesday, the company said in a brief statement that it had sought court approval for the appointment of Mr John Harkness, from the chartered accountancy firm, Peat Marwick Hungerfords, as provisional liquidator.