KTP faces loss after RI investments

KTP faces loss after RI investments

HONG KONG (Reuters): KTP Holdings Ltd said it may report a net loss for the year ended March 31, 1998, due to substantial provisions made on investments in Indonesia.

The sports shoes manufacturer said in a statement on Tuesday it would make a further provision of about US$30 million in its results for the year ended March 31, 1998, for its investments in two factories in Indonesia. It made a provision of about $12 million in its interim results.

"As a result of this substantial provision, the group's results for the year ended 31st March 1998 may show a net loss," KTP Holdings said.

The company said it was constantly reviewing its operations in Indonesia but did not have any immediate plans to cease work there. "To the best knowledge of the directors, they are not aware of any significant contingent liabilities relating to the group's operations in Indonesia," KTP Holdings added.

The company said the total amount of provisions would not be finalized until its year-end audit was completed.

"Barring unforeseeable events, the directors believe that the working capital of the group is adequate for its current requirements after taking into account the existing banking facilities available and the expected net proceeds of the rights issue," KTP Holdings said.

The company announced plans in February to raise HK$73.6 million through the issue of about 170.31 million new rights shares at HK$0.45 each.