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.