Stephen Yiu (left), Tai Lin's provisional liquidator from Ernst & Young, points out that the defunct electronics retailer has debts of HK$170 million and owes its employees another HK$10 million. CNS

The provisional liquidator of Tai Lin Radio Services, the collapsed electrical-appliance chain, said the company has only about HK$500,000 net cash in hand - not nearly enough to pay off its debts, much less its employees.

Stephen Yiu, the provisional liquidator from Ernst & Young, said Tai Lin currently has debts of HK$170 million and owes its employees around HK$10 million.

In addition to the cash, the retail chain has about HK$60 million in assets, Yiu said yesterday at a meeting called by the Hong Kong Federation of Trade Unions, at which about 200 Tai Lin employees were present.

Yiu added that around two to three potential buyers have showed interest in rescuing the 62-year-old electrical appliance store. He expects a purchase, if any, would be made in the next week to 10 days.

"Buyers can rearrange the lease and the rent, which may help them run a profitable business," Yiu said, adding that all the remaining assets of Tai Lin will be sold off if the transaction fails, and the employees would be paid as soon as possible.

Meanwhile, some self-employed technicians who took jobs outsourced by Tai Lin haven't been able to apply for compensation from the Protection of Wages on Insolvency Fund, as the Labour Department has refused to entitle them as staff members of the electrical appliance chain. Tai Lin owes the technicians about HK$1.5 million.

Hong Kong Department Stores and Commercial Staff General Union Vice Chairman Tang Cheung-sing said the union will urge the Labour Department to confirm the technicians as employees, and they will meet the labor commissioner today to discuss the issue.

"We now ask the provisional liquidator to finish their calculations this week and send the finished report to the Labour Department. We hope the employees can get back their money this month, after the Labour Department confirms the document," Tsang said.

Regarding a potential purchaser of Tai Lin, Tang said it is a possibility. "The discussion is still ongoing, and it should be confirmed within this week," Tang said.

Tai Lin closed its doors suddenly Friday, laying off around 260 employees pending an inventory count.

(HK Edition 10/21/2008 page2)