Hooker waits on decision

Press, 6 September 1989, Page 42

Hooker waits on decision

NZPA-AAP Sydney Hong Kong businessman, Mr Lo Yuk Sui, could decide to proceed later this week with his proposal to rescue Hooker Corporation from liquidation through a SAustlOO million loan. The response by creditor banks of the collapsed retail and property company had been “generally positive” with some signing letters of support, Mr Lo’s local adviser said.

Wardlby James Capel's managing director, Mr Bill Beerworth, said some banks had requested further information about Mr Lo and his rescue package, but on the whole the response had been favourable

The rescue plan would eventually see Richfield International Investments, controlled by Mr Lo, acquiring not less than 65 per cent control of Hooker.

Hooker’s provisional liquidator, Mr John Harkness, has said he would not comment on Mr Lo’s offer until a firm proposal had been put to creditors and shareholders.

The company was placed in provisional liquidation on July 26 with debts of nearly 5NZ2.5 billion. Mr Lo’s offer was put to the creditor banks in a letter last Thursday. None of the banks would publicly comment on the offer. Contingent to the offer was an undertaking by creditor banks not to enforce securities and to withhold demands while Richfield studies options for a reconstruction of Hooker.