The West

VDM s executive chairman and interim chief executive Dongyi Hua. Picture: Gerald Moscarda/The West Australian.
VDM's executive chairman and interim chief executive Dongyi Hua. Picture: Gerald Moscarda/The West Australian.

UPDATE 2.30pm: Struggling contractor VDM has been forced to tap shareholder Australia Kengkong Investments Co for a $4.5 million convertible loan just months after raising $13.4 million as part of a plan to recapitalise the business.

If approved by shareholders, the loan would boost Kengkong's holding in VDM from 19.82 per cent to 29.9 per cent, giving it a seat on VDM's board.

Interest on the loan would be charged at 10 per cent until shareholders approve conversion of the loan at a meeting to be convened before October 20.

Should shareholders oppose conversion of the loan, VDM would be charged an interest rate of 15 per cent and an additional $45,000 fee.

Funds raised from the loan would be used for working capital.

KengKong is controlled by Hong Kong-based investor Hiu Ming Luk.

VDM's executive chairman and interim chief executive Dongyi Hua owns 36 per cent of VDM through his company H&H Holdings Australia.

Shares in VDM were steady at 0.8 cents at the close.

The West Australian

Latest News From The West

Indian entrepreneurs Pankaj and Radhika Oswal flew out of the country the day they settled their court case last week, claiming that they felt “victorious”, while accusing Australia of exploiting …

Popular videos