By Phil Boeyen, ShareChat Business News Editor
Thursday 9th November 2000
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Savoy Equities has moved to reassure its shareholders in the wake of a bankruptcy ruling against one of the company's directors.
Savoy has advised the market that that for personal financial reasons Jihong Lu has resigned as a director of Savoy Equities and all related subsidiary companies.
The Savoy board says Mr Lu's departure in no way affects the running or management of the company, and that a replacement director will be announced shortly in line with Stock Exchange requirements.
The Business Herald this morning reported that Mr Lu had been adjudged bankrupt in the High Court at Auckland yesterday over a $2.5 million debt to a Malaysian engineering firm.
Savoy CEO, Kerry Haycock, says while Mr Lu's contribution to the Board will be missed, he had been pursuing private initiatives and had not been involved in the day-to-day running of the company for some time.
"As far as we are concerned it is business as usual. The company is continuing to successfully pursue its strategy as a leading wireless mobile application technology company in the Asia-Pacific region".
Savoy shares have been on a downward slope since the company completed a one-for-ten share consolidation last month. The consolidation lowered the number of shares from around 560 million to 56 million, and saw the share price rise from around 4 cents to 40 cents.
However the shares have dropped back within weeks to half that level, and have been trading this morning down 5 at 15 cents.
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