HONG KONG -(Dow Jones)- Blue-chip consumer goods exporter Li & Fung Ltd. (0494.HK) said Monday it will offer assistance to Hong Kong companies that supplied products to failed KB Toys Merchandising Inc. of the U.S.
"The outstanding amounts due to the factories are owed by KB Toys," Li & Fung said in a statement.
The blue chip company acted as an agent for the U.S. retailer that filed for bankruptcy in December, and said it will help the manufacturers seek recourse from the bankruptcy courts.
Li & Fung, which managed the production of KB Toys' orders at factories appointed by the U.S. company, said more than 40 toy makers formed a group to demand claims from it totaling around US$10 million.
The Hong Kong-listed company will provide appropriate assistance to all KB Toys suppliers, especially the small- and medium-sized enterprise factories, Li & Fung Executive Director Henry Chan said in the statement.
"As one of the largest creditors of KB Toys, Li & Fung will seek proper recourse from the bankruptcy courts and has approached most of the affected factories to meet with the group to discuss how it can help them to deal with the bankruptcy proceedings in the United States," he said.
The statement didn't specify whether the company will provide financial assistance to the factories.
Li & Fung's exposure to KB Toys is about US$5 million, mainly comprising unpaid commission for its role as an agent for the failed U.S. toy retailer.
-By Joyce Li, Dow Jones Newswires; 852-2802-7002; joyce.li@dowjones.com
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Publié le 05 janvier 2009 Copyright © 2009 Dowjones