Tuesday 30 December 2008

Sun East Group’s Executive Chairman Resigns

Sun East Group, which said recently it faced a credit squeeze, said yesterday that its executive chairman Philip Chung has resigned for health reasons.

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Guanyu said...

Sun East Group’s Executive Chairman Resigns

30 December 2008

Sun East Group, which said recently it faced a credit squeeze, said yesterday that its executive chairman Philip Chung has resigned for health reasons.

Mr. Chung, 64, founded the beauty and cosmetics branding and management group in February 1999 and was responsible for overall strategic planning and business development.

Sun East executive director and chief executive officer Jennifer Shum has been named executive deputy chairman with immediate effect.

She will assume the duties and responsibilities of executive chairman until a new appointee is named. Ms Shum has been Sun East’s chief financial officer since 2003, responsible for overseeing accounting, financial reporting, management and human resources.

‘The selection process for a new executive chairman is underway and the group will make an announcement when appropriate,’ Sun East said.

The developments come soon after the group told investors it faced funding issues.

It said in October that it could not meet a US$15 million debt repayment because of weak credit markets and was in talks with Deutsche Bank, which issued the secured floating rate notes, to settle the matter after some debt conditions were breached.

Sun East also said it had been hit by a delay in collecting debts from five major customers with combined overdue receivable balances of HK$84.8 million (S$15.7 million).

In an update in November, Sun East said it intended to use up to HK$8 million of the net proceeds from a capital-raising exercise to partly repay or redeem the US$15 million of secured floating-rate notes due in 2009.

Net proceeds from the capital raising exercise are estimated at HK$24.26 million.