Golden Century wine collection to be liquidated in rescue plan

The rescue plan for Sydney’s Chinese dining institution Golden Century will see assets sold including wine worth $1.2m and debts called in.

The rescue plan for Chinese dining institiution Golden Century, which is owned by the Wong family, will see assets sold including wine and debts called in. Picture: Sam Ruttyn

Sydney Chinese dining institution Golden Century has proposed a rescue plan that would see the business saved, in part through a bulk sale of $1.2m in wine from the restaurant’s cellars.

A creditors report filed with the corporate regulator reveals Golden Century, which entered administration last month, had been struggling for some time under the weight of loans made to key figures and pandemic losses.

Golden Century, which is owned by the Wong family, booked a trading loss of $1.1m for the 2019 financial year, followed by another $590,000 hit for the 12 months to June 30, 2020.

However, Golden Century’s financial performance improved in the 2021 financial year with the group swinging to a trading profit of $787,905, according to the report by administrators Chifley Advisory.

In the most recent trading period between July 1 and August 16, Golden Century turned over just $10,776 in orders as Sydney’s Covid lockdown destroyed demand for long lunches.

But the report noted the end of the business was brought about by a dispute with the company’s landlord over renewal of the lease at the three floor Chinese restaurant in Sydney’s Sussex Street.

Faithful Investment, the company’s landlord has submitted a claim for $1.7m in equitable lease against the company.

Golden Century Seafood Restaurant has also submitted a $2.28m proof of debt claim for an outstanding loan account as well as outstanding claim for rental arrears.

However, the administrator disputes this figure, noting the valid claim was closer to $1.63m “of which the amount of $85,009.71 relates to an outstanding loan account and the amount of $1,549,951.72 relates to rental arrears (including deferred rental payments for the period from April 2020 to December 2020).”

The deed of company arrangement, proposed by Kam Wah Wong, proposes a 100 cents in the dollar payout for the almost 65 employees.

However, employees will only get 47.4 cents in the dollar for redundancy entitlements.

Golden Century

Mr Kam and his spouse would receive none of the $1.3m they say they are entitled to under the process.

However, some creditors will receive far less.

The post mortem of the business finds assets worth around $2.4m and liabilities of more than $4m.

This is just for the corporate entity Honouful, which traded as Golden Century and does not extend to the Golden Century Seafood Restaurant.

The rescue plan would also see Golden Century’s voluminous wine collection liquidated.

The administrators have posted a listing for the wine on Grays Online, noting they hope to recover $1.2m.

The rescue plan will also nix potential legal action underway by a customer for food poisoning against Golden Century.

The report found $1.53m in related party loans, including $1.448 to Golden Century’s holding company Keenward, which is controlled by the Wong family behind the Chinese dining empire.

It noted that Keenward “disputes the debt” owed to Golden Century is payable.

“Keenward has asserted that it is unwilling, and may be unable, to repay some or all of the Keenward debt,” the report said.

The report also identified $830,000 that left Golden Century’s bank accounts in the 12 months prior to the company entering administration “which may comprise unreasonable director-related transactions”.

Under the terms of the deal, Keenward will contribute $750,000 towards the rescue plan.

The Wong family owns and operates Golden Century, XOPP, Golden Century Seafood Restaurant, as well as The Century at Star Casino.

Originally published as Golden Century wine collection to be liquidated in rescue plan