Anwell unit's assets seized and sold to creditor after default

SINGAPORE - A unit of mainboard-listed Anwell Technologies has had its assets seized and sold via public auction after it defaulted on its loans.

The assets of Henan Kerry Digital Co were sold to a trade creditor on June 27 for about 66.25 million yuan (S$13.3 million), Anwell said in a filing to the Singapore Exchange yesterday.

Anwell and Henan Kerry intend to lease back the assets and are currently negotiating a lease agreement with the creditor, the company added.

Henan Kerry had owed about 94 million yuan in outstanding trade payables to the creditor, which was not named.

Henan Kerry is among three China subsidiaries of Anwell that were reported last year to have defaulted on their loans totalling HK$376 million (S$60.2 million).

Anwell, which makes manufacturing equipment, had said then that the units' assets - primarily land, buildings, plant and equipment had been seized to prevent the companies from disposing of them. But the subsidiaries were still allowed to use the assets for their daily operations.

The total book value of the assets seized from the three subsidiaries - which also included Henan Sungen Solar Fab Co and Dongguan Anwell Digital Machinery Co- was about HK$1.8 billion as at Aug 31 last year.

Trading in Anwell's shares has been suspended since Aug 14 last year and will remain so until further notice, the company said.