The management of South Shore – the company responsible for The 13 Hotel – has indicated that it received a statutory demand from creditors asking for the repayment of HK$3.2 billion (US$410.3 million) in debts.
‘If the Company fails to repay the Debt within 3 weeks from the date of service of the Statutory Demand, the creditor may present a winding-up petition against the Company. The Company is considering taking legal advice in this regard,’ South Shore indicated in a Hong Kong Stock Exchange filing.
The company board also resolved to establish a special committee on June 1, including two Executive Directors and three Independent Non-executive Directors, namely, Vincent Chow Chi Wah, Chow Mun Yee, Dr William Lo Wing Yan, Clifford Choi Wai Hong, and Liu Tsui Fong, to deal with all matters relating to its hotel business and outstanding loans of the group.
South Shore recently issued a profit warning ahead of expected losses for the year ended March 1 totalling HK$950 million.
In its 2020 annual report, the company indicated that is “working hard to seek prospective buyers for the hotel as well as other measures with a view to strengthen our balance sheet”.
This was after an attempt to sell the ownership of the property for HK$750 million fell through, in September of last year.