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Hong Leong Asia's restructuring of Xinfei unit progresses
HONG Leong Asia announced on Tuesday that certain key steps in the planned restructuring and sale of its consumer products unit, collectively known as the Xinfei unit, have been taken - including the obtaining of the approval of the majority of Xinfei's creditors to the restructuring plan.
The restructuring will involve transferring the equity holdings of existing Xinfei shareholders to a new investor via a tender process; the new investor has to be a China-incorporated company, with experience in either home appliances manufacturing or home appliances sales and distribution.
Creditors of Xinfei owed small amounts are to be paid in full, while the repayment of other creditors will depend on the amount of proceeds which can be realised.
Hong Leong Asia had announced previously that its loss-making Xinfei had ceased manufacturing and production activities in November 2017. Xinfei had been selling refrigerators, freezers and air-conditioners in China, but had been impacted by the "challenging market environment" facing the white goods industry in China, with its intense competition and price pressure, Hong Leong Asia said.