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Food Empire unit graduates from court-led rehabilitation scheme
FOOD Empire Holdings on Thursday said that its associated company Caffe Bene Co has graduated early from its court-led corporate rehabilitation scheme.
In January, Caffe Bene, which is in the coffee house franchise business in South Korea, filed for the rehabilitation process due to excessive debts chalked up prior to Food Empire's investment in the company. The scheme was later approved by the majority of its creditors.
Food Empire's 51 per cent owned subsidiary, Hallyu Ventures, owned 44.8 per cent shareholdings in Caffe Bene. Under the rehabilitation scheme, Hallyu Ventures’ shareholdings in Caffe Bene was adjusted to about 2.24 million ordinary shares, representing 37.61 per cent in the share capital of Caffe Bene.
Caffe Bene remains the group’s associated company.
Food Empire said that the early graduation from the rehabilitation scheme is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the group for the current financial year.