Three separate investor groups are vying for defunct E-commerce and social networking site Multiply, the High Court heard on Monday.
Apart from Multiply’s current investor and creditor China Culture Media, which is controlled by mainland investor Si Rongbin, it emerged that Zhao Dong, a potential investor whose nationality was not specified in court, had also offered to save the troubled firm.
Zhao is currently in discussions with Multiply’s former boss and largest creditor Wong Ching, who initiated proceedings in the current case to wind up the broadcaster to recoup his losses.
The hearing on the liquidation petition was adjourned until December 3 pending further details provided by the potential white knights, including listed company China Trends.
Wong, who did not attend the hearing on Monday, said through his lawyer that Zhao’s preliminary proposal included plans to advance HK$50 million to pay former Multiply’s staff their owed salaries.
Meanwhile, China Trends, which took part in the petition as one of Multiply’s creditors, said it had plans to inject money into the distressed company in return for the website’s shares.
The technology company, whose previous debt restructuring proposal was rejected by Wong last month, did not state in court why it was still interested in Multiply.
In a regulatory filing dated June 10, China Trends said its plans to save Multiply remains valid as long as the company could avoid going bankrupt and therefore keep its core resources.
On Monday, Deloitte, the provisional liquidator for Multiply, told the court the website carried on with operations for its worldwide market.
While it had assets, including properties and equipment, valued at nearly HK$600 million, Multiply has been only left with about HK$2 million in cash, a lawyer for Deloitte said.
“has little revenue now,” he noted.
High Court judge Mr Justice Jonathan Harris said Multiply’s case had dragged on for some time, but it was “sensible to wait a bit longer” and allow all the interested parties to reach an agreement.
Representatives of former Multiply staff, who also took part in the petition, questioned whether the potential investors would actually pay them their owed wages.
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