Millennium&Copthorne Hotels New Zealand Ltd today detailed further wrongdoing by a former partner in a business venture in China.On Monday the company detailed actions by Cheung Ping Kwong, alleging deceit and intimation by him.Today it said he had di
Millennium&Copthorne Hotels New Zealand Ltd today detailed further wrongdoing by a former partner in a business venture in China.
On Monday the company detailed actions by Cheung Ping Kwong, alleging deceit and intimation by him.
Today it said he had disposed of further assets without the authority to do so. Millennium&Copthorne's exposure to the additional disposals was $NZ3.4m, taking total exposure to $26.1m.
Millennium&Copthorne, which owns hotels in New Zealand, has a 34 percent interest First Sponsor Capital Ltd (FSCL), which owns a 75 percent of Idea Valley Investment Holdings Ltd (IVIHL).
A company controlled by Mr Cheung owns 20 percent of IVIHL and Mr Cheung had management rights over Idea Valley Group Ltd (IVGL), which is wholly owed by IVIHL.
On Monday Millennium&Copthorne said Mr Cheung was ousted from IVGL but seized control of the company seals, sacked people appointed by FSCL, took control of IVGL's office and denied IVIHL access to the books.
In China, the affixing of the company seal, together with the legal representative's signature, represents the full authority of the company.
Mr Cheung moved to sell IVGL's 100 percent interest in Hainan Hotel Owning Company and 80 percent interest in a company which owned a development project in Dongguan, China.
Today the company said it had learned that he had disposed of an IVGL subsidiary's 85 percent interest in two parcels of development land in Guangdong province and IVGL's 70 percent interest in a landscaping business and plantation nursery.
IVIHL was urgently seeking to void all unauthorised sales and was taking measures to safeguard remaining assets. Millennium&Copthorne's interest in remaining assets was $NZ21.3m.
Further unauthorised disposals by Mr Cheung could not be ruled out. FSCL Group's operations in Sichuan province remain under FSC's control.
