http://www.scmp.com/news/hong-kong/economy/article/1840031/fresh-doubts-over-hong-kong-newspaper-sing-pao-parent-company
SCMP - Hong KongToday, 7:00 AM
The High Court has appointed two provisional liquidators for the cash-strapped company behind Sing Pao Daily News, raising fresh doubts about the future of the city’s oldest Chinese-language newspaper.
Another Chinese daily, the Hong Kong Daily News, went out of business on Sunday after 56 years, succumbing to years of financial losses.
In an announcement yesterday, the Growth Enterprise Market-listed Sing Pao Media Enterprises said: “On 13 July, an order of the High Court of Hong Kong was granted for the appointment of Mr Edward Simon Middleton and Ms Wong Wing Sze Tiffany, both of KPMG, to act jointly and severally as provisional liquidators to the company.”
It said the company and its operating subsidiaries would remain in operation.
The paper had about 20 staff, including reporters and editors, on its local news desk as of April.
On April 14, creditor Korchina Culture Investment filed a petition to the High Court to wind up the company. The court document was not available to the public.
Sing Pao Media published a notice in April, claiming a lender had sent a statutory demand notice and that the directors were negotiating with an unnamed independent third party to grant a new loan of HK$110 million.
A hearing of the winding-up petition was scheduled for August 12.
The newspaper, founded in 1939 by Ho Man-fat, used to be one of the most popular Chinese dailies. Ho sold it in 2000 for HK$150 million to Optima Media Holding. Qin Hui, a mainland businessman and nightclub owner, bought Optima and changed its name to Strategic Media International in 2004.
The paper was sued for failing to pay salaries in 2006 and 2007 and was almost wound up by the Mandatory Provident Fund for failing to pay HK$4.2 million in contributions in 2008.
Former Birmingham City soccer boss Carson Yeung Ka-sing stepped in to help in 2008 with a loan of up to HK$60 million to its parent company. Qin transferred his shares to Yeung in 2010. But last month Yeung, now in jail for money laundering, filed a HK$5.75 million writ against Qin and Strategic Media.
Trading in shares of the company has been suspended since April 28, 2005.
