Real Gold Shareholders Approve Plan to Restructure Wu’s Debt
Real Gold Mining Ltd. (246), suspended from Hong Kong trading since May last year following a report about accounting irregularities, said 84 percent of its public shareholders approved an agreement to restructure debt owed to it by its largest stakeholder.
Wu Ruilin, who controls 41.2 percent of the gold producer with associates, abstained from voting at an extraordinary general meeting today, Real Gold said in a statement to the Hong Kong stock exchange.
The Inner Mongolia-based company said in June the HK$794 million ($102 million) owed by Wu will be taken over by two British Virgin Islands-based companies, Quanmin Investments Ltd. and Victory Gold Management Inc., which will receive stakes in Real Gold in return. Wu’s stake will fall to 15.4 percent after the restructuring.
Real Gold was suspended from trading after the South China Morning Post reported that the company may have filed two different sets of accounts. Real Gold is required to conduct an independent forensic-accounting investigation and publish all outstanding results before it can resume trading, the Hong Kong stock exchange said in a letter to the company in March.
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