Golden Century creditors vote to approve $2.4m rescue plan

Creditors have voted to accept a $2.4m deal that will see the collapsed Sydney Chinese dining institution reborn. Read the full report

Golden Century owners Billy, Linda and Eric Wong.

Sydney Chinese dining institution Golden Century will be reborn after creditors voted to accept the rescue plan proposed by the family behind the restaurant.

The deed of company arrangement proposed to clear the business of its debts and save cash ahead of a post-pandemic relaunch.

The deal will see $2.4m pulled together from company assets and cash contribution to fund the Doca.

The vote today was supported by 47 creditors representing a total dollar claim of $4.5m, with two abstaining.

The abstaining creditors had not put in a claim.

No creditors voted against the rescue plan.

Chifley Advisory administrator Desmond Teng said the outstanding support by employees in the creditors vote showed the level of support for the business.

“For me that means the management has treated them well in the past to get such overwhelming support,” he said.

“There’s time now for Honourful Pty Ltd to strategise and think about what they want to do next.”

Honourful traded as Golden Century.

The vote clears the decks of Golden Century and sets in motion a 15 business day timeline to wrap up the DoCA proposal.

Wong family scion Kam Wah Wong sees the company clear its debts and pay most employee entitlements.

Outstanding wages to 65 employees will be paid in full, however, employees will only get 47.4 cents in the dollar for redundancy entitlements.

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

The sprawling kitchen and its equipment of the restaurant will be surrendered to ANZ.

The sale will be in part funded through a bulk sale of Golden Century’s voluminous wine vaults, with a buyer willing to part with $1.15m for the bottles secured in the last few days.

The sale price is slightly below the $1.2m proposed earlier in the process and comes after an audit of the wine stocks identified damaged or unfit to be sold bottles.

Owner of famous Sydney Chinese restaurant "Golden Century", Eric Wong pictured checking the temperatures of staff members before lunchtime service. Picture: Sam Ruttyn

The holding company of the Wong family’s restaurants would also contribute $750,000 towards the rescue plan.

The collapse of Golden Century came in the wake of several bad years in which the business lost money before being brought to a head by a rent renegotiation.

The company’s creditors report filed with the corporate regulator revealed Golden Century had been staggering under significant losses since as far back as 2018, despite its popularity.

The report finds the three story restaurant on Sydney’s Sussex Street was hit by losses of $1.1m in the 2018 financial year followed by another $590,000 hit in the 2019 financial year.

However, this was followed by profits of $787,905 last year as economic support buoyed the business.

The business was placed in administration on August 16.

However, the administration did not extend as far as the Wong family’s other restaurants XOPP, Golden Century Seafood Restaurant, as well as The Century at Star Casino.

These restaurants continue to trade.

Golden Century

Originally published as Golden Century creditors vote to approve $2.4m rescue plan