RIP ~ Peace Mark

Watch-maker Peace Mark - Sincere Watches to be sold for >HKD500mm by Dec 12. Peace Mark sold to Chow Tai Fook for HKD505mm (USD65mm). Back in 2006, Peace Mark's turnover is HKD2.2bn(USD287mm) end-Mar.

• 12Jan07-To mobilize HKD400mm for capex and acqusition out of HKD1.2bn.


• 13Jul07-Mkt cap stands at HKD12bn.


• 26Sep07-Peace Mark acquires 3 Swiss watch makers for an undisclosed price.


• 08Dec07-PM to acquire Sincere for SGD530, 11% premium.


• 05Feb08-PM signed US500mm - ABN, BNP and ING~200mm Sincere, 300mm refi.


• 02Apr08-PM to refi loans, MQB is financial advisor.


• 27May08-Consider acquiring watch brands in china. capex of hkd250-300mm in 08.


• 05Jun08-PM to raise USD116 throu' BNP for debt refi and exp.


• 23Jul08-PM to sell its 51% US distribution business. (USD196mm in cash).


• 12Aug08-PM shares d73% on debt and CFO resigned.$150mm bridge due in Mar09. ST debt amt to USD678mm. Net debt ratio 131.3%. Mkt cap of $293mm.


• 19Aug08-CVC buyout of PM


• 31Aug08-PM to sell Soprod, Swisee Clockwork manufacturer. turnover of E15mm.


• 02Sep08- More than 10 banks asked to be repaid since Aug. USD200mm new loan delayed.


• 03Sep08-Lenders call in HKD1.216bn loan as result of mid-aug slide. Also owe a $202.2bridging loan due end sep.the company’s main banks are ABN AMRO Bank N.V., Bank of America, Bank of China, BNP Paribas, Deutsche Bank AG, ING Bank N.V., HSH Nordbank AG, Merrill Lynch, OCBC Bank, Standard Chartered Bank and United Overseas Bank. Lenders to the HKD 1.17bn syndicated loan include ABN AMRO, Agricultural Bank of China, Arab Bank, Banco Bilbao Vizcaya Argentaria Hong Kong, Bank of China Macau, BNP Paribas, Bank of Nova Scotia, Bank of Taiwan Hong Kong, Bank of Tokyo-Mitsubishi UFJ, Commonwealth Bank of Australia, DBS Bank Hong Kong, First Commercial Bank, Fortis Bank, HSH Nordbank, ING Bank, Maybank, Mizuho Corporate Bank, Nanyang Commercial Bank, Public Bank Hong Kong, Shanghai Commercial & Savings Bank, Shanghai Commercial Bank, Taipei Fubon Commercial Bank Hong Kong, Taiwan Business Bank, Hong Kong, Taiwan Cooperative Commercial Bank, UOB Asia Hong Kong, and Wing Hang Bank.


• 10Sep08-Bnkea seized 3 shops in China, owed CNY27mm


• 10Sep08-Peace Mark likely to enter provisional liquidation on back of Ferrier Hodgson report, bankers say. Review raises aises serious doubts over the company’s accounting practices. Sincere ring fenced from liquidation.


• Similiar to "Moulin”, acollapse of the formerly HK listed eyeglass maker and distributor in 2005 after it was discovered that its audited financial statements were materially misstated. Moulin Global Eyecare Group was entered into provisional liquidation in jun 05 with the company at the time having total debts outstanding in excess of USD 320m to more than 30 creditors. Recovery is similiar to 11.7-24.3 cents on the US dollar from the liquidation of that company.


• Peace Mark’s total outstanding debt is app HKD 4bn. However, the final amount of debts outstanding is likely to be greater given that the company also has a no of derivative transactions with Citi, Lehman, ML and UBS.As reported, Peace Mark has 63 bilateral HKD bank loans totalling HKD 1.2bn [USD 154]; 10 bilateral Chinese yuan-denominated loans; a 4-year syndicated term loan maturing in June 2011 having a total outstanding principal balance of HKD 1.17bn [USD 149.8m] to which 28 banks are creditors; and, around USD 201m left outstanding from a USD 500m secured bridge loan that the company obtained from ABN AMRO Bank, BNP Paribas and ING Bank in February this year.


• 17Sep08-PM in asset sale. CVC, Carlyle and Candover may hv interest. Also hv attracted interest from Chow Tai Fook, with the new world development group.


• U-RIGHT International Holdings, the Hong Kong listed men and ladies casual wear's manufacturer, could face financial difficulty similar to Peace Mark and Tack Fat Group.U-RIGHT has been actively raising funds recently. It obtained a HKD 150m syndicated loan in July this year, and is planning to raise as much as HKD 234m from issuing new shares this month, the paper added. Its share price has plunged more than 84% from its all-time high of HKD 0.089 per share to HKD 0.014 apiece before its share trading suspension.


• 08Oct08-PM approved sale of Chinese assets to Chow Tai Fook for HKD 600mm subject to lenders' agreement. Sincere up for sale.


• 17Oct08-Ferrier Hodgson has estimated that total claims against Peace Mark are HKD 3.316bn (exclusive of claims held by the providers of a USD 200m bridging made to Peace Mark and secured by the company’s shareholding in Sincere Watch Ltd). Thus, given the HKD 258m from the net cash proceeds coming from Chow Tai Fook’s purchase, the sale is expected to lead to an average recovery of 7.8% for Peace Mark’s financial creditors, the bankers said.


• 24Oct08-Under Plan B, the guarantees that the Peace Mark companies provided for the syndicated loans would remain in place, but the shares of the guarantor companies would be transferred to New Flow Group.


• 21Nov08-Completion of asset sales to Chow Tai Fook.