Walcom Group is short of cash and the chief executive has been unable to provide the funds he intended to lend to the company.
Francis Chi, who is also finance director, was going to loan HK$1.23m to a subsidiary. He still intends to loan the cash. A partial repayment of RMB150,000 is due at the end of March on the bank loan. Walcom can afford this but it hopes to reduce the repayment.
Walcom needs additional cash by 3 April or it may not be able to continue to trade. If the cash does not arrive Walcom may go into liquidation.
Demand for the company’s products has been hit by African Swine Flu reducing the pig population.
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