TNAG-1812-FCO40-2573-Preservation-of-Ohel-Leah-Synagogue-in-Hong-Kong-1988 — Page 48

of The Wing On Bank's fall from grace 3 years ago, when it lost $HK282 million in 1985.

There is still a large Accumulated Loss on The Wing On (Holdings) Ltd books which is due to The Wing On Bank.

The Accumulated Loss was $HK164.98 million in 1986, and it has been reduced to $HK160.99 million in 1987 due to the $HK3.98-million profit returned from The Wing On

Bank last Year.

The Wing On Bank spent much of 1987 steadying itself and streamlining its operations.

It is now making concerted moves to recover $HK500- million worth of questionable and doubtful debts.

A number of High Court Actions were filed during 1987, the most notable of which was the Action against Mr Leslie Collings and his companies, who are in debt to The Wing On Bank for more than $HK100 million.

Yin On Associates Ltd, a private company which is owned and controlled by some members of the Kwok Family, was indebted to The Wing On Bank to the tune of about $HK45 million.

However, one wonders how Yin On Associates Ltd could have obtained such a seemingly large banking facility $HK60 million in 1985 -- from The Wing On Bank, based on the company's Silvercrest property as the sole collateral.

In March 1987, Yin On Associates sold one floor of its Silvercrest property for $HK3 million.

Since then, Yin On Associates has sold another 16 apartments in Silvercrest for a further $HK56.50 million.

The proceeds of these sales went to The Wing On Bank. Presumably, the proceeds of Silvercrest, about $HK60 million, will cover the original $HK45-million loan plus

interest.

The funds received from Yin On Associates will go some way in helping The Wing On Bank in reducing its Bad Debts.

The dramatic events of The Wing On Bank's recent history seem to be drawing to a close with doubtful debtors being chased and with some of the scoundrels involved being convicted of various offences.

Mr Lawrence Cheung Tse Soon was convicted in March 1988 of conspiring with Mr Albert Kwok Chi Hong on 6 different counts to defraud The Wing On Bank of $HK25

million.

Mr Lawrence Cheung Tse Soon was sentenced to jail for 3 and a half years for his part in the siphoning off of $HK25 million from the coffers of The Wing On Bank 3 years ago.

Mr Lawrence Cheung Tse Soon is appealing the decision. However, there are still one or 2 skeletons in The Wing On Bank's 'closet', for the matter of Mr Lawrence Chu Cho Ham has yet to be settled.

Mr Lawrence Chu Cho Ham is charged with allegedly conspiring with Mr Albert Kwok Chi Hong to defraud The Wing On Bank of $HK40 million, and another charge of allegedly defrauding 4 companies with which Mr Lawrence Chu Cho Ham was associated of $HK20.05 million.

During the latter part of 1987, it was confirmed by the Hang Seng Bank's Director and Deputy General Manager, Mr T.C.Ho, that Hang Seng Bank was under negotiations with a potential purchaser for 50.3-percent stake in The Wing On Bank.

Mr T.C.Ho stated that one party, thus far, had ap- proached the Hang Seng Bank and the Kwok Family to negotiate for outright ownership of The Wing On Bank.

Though Mr T.C.Ho would not reveal the identity of the prospective purchaser, it is thought that it might be part of the China Resources Group.

Prospects

The Wing On (Holdings) Ltd is a well diversified com- pany whose main areas of activities, retail department stores, the renting out of properties, insurance and banking, all seem to have steady and, in some cases, relatively bright futures.

The Wing On Department Stores are well-known, well- liked and well-established in Hongkong, and are considered some of the best local department stores.

The Profits for 1988 are looking close to, if not better than, the record Results posted by the department stores in

1987.

The Group's property activities, mainly the renting of properties in the Group's property portfolio, will provide the Group with stable income with the possibility of considerable capital gains.

The property sector, which has been very active in the past with the purchase and sale of many properties, was uncharacteristically quiet in 1987.

With stability and profitability returning to the Group, one may expect the Property Division to become more active in the future and contribute to the Group's Profits to a larger extent than it did in 1987.

Insurance activities will provide the Group with a good source of revenue, but due to heavy competition in this area,