Food Empire unit gets creditors' consent to start rehabilitation scheme

FOOD Empire Holdings on Friday updated that its associated company, Caffe Bene Co, had successfully obtained consent by the majority of its creditors to commence the court-approved rehabilitation scheme.

Caffe Bene is in the coffee house franchise business in South Korea.

Food Empire's 51-per-cent owned subsidiary, Hallyu Ventures, owns 44.8 per cent shareholdings in Caffe Bene. In January, Caffe Bene had filed for a court-led corporate rehabilitation process due to excessive debts assumed prior to Food Empire's investment in the company.

Now, under the rehabilitation scheme, Hallyu Ventures's shareholdings in Caffe Bene will be adjusted to about 2.24 million shares representing 37.61 per cent, and Caffe Bene will remain as Food Empire's associated company.

The rehabilitation scheme is not expected to have any material impact on Food Empire's consolidated net tangible assets and earnings per share for the current financial year, it said.