Sydney dining institution saved from administration – post pandemic relaunch now on the cards

The iconic Golden Sydney Chinese restaurant has received a new lease of life, after creditors accepted a rescue plan to save the dining institution.

The restaurant was placed into administration on 16 August, following several years losing money dating back to 2018. The state of the business was laid bare, following a recent rent renegotiation.

The $2.4 million rescue plan was proposed by the owners of the restaurant, the Wong family, and has received the full support of creditors.

The proposed deed of company arrangement (DoCA) is designed to clear the business of its debts and save money, with the cash pulled together from company assets and cash contributions.

47 creditors were in favour of the proposal, representing a total claim of $4.5 million.

Two creditors abstained from voting, while there were no votes against the rescue plan.

The plan was heavily supported by employees, which according to Chifley Advisory administrator Desmond Teng showed outstanding support for the creditors and the business.

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

“There’s time now for Honourful Pty Ltd (which traded as Golden Century) to strategise and think about what they want to do next.”

Wong family scion Kam Wah Wong has said through the plan, the company will clear its debts and pay most employee entitlements. This includes outstanding wages to 65 employees. Those made redundant will only receive 47.4 cents in the dollar for redundancy entitlements.

Mr Wong and his spouse will not receive any of the $1.3 million they are reportedly entitled to.

Part of the funds that form the rescue plan will come from a bulk sale of Golden Century’s wine vaults. A buyer has already emerged and is willing to pay $1.15 million for the collection.

Golden Century has now put in motion a 15-business-day timeline to finish the DoCA proposal.

Golden Century will re-launch post pandemic.

Irit Jackson, 15^th September 2021