Case ID: 0052
Solution ID: 13719
Words: 1011
Price $ 45

Hopewell Holdings Limited

Case Analysis

Hopewell Holding Limited (HHL) is a Hong Kong based public limited company known for making investments in property development, power generation plants, infrastructure development etc. in Asia Pacific Region. It was established on October 17, 1972 by Sir Gordon Wu, a Princeton-educated engineer. It’s headquarter is located in Wanchai, Hong Kong. Since HHL faced a serious loss of HK$5.3 billion in BERT project because of Thailand’s political instability, economic crisis and unsuccessful negotiation over fare structure, its cash flow system was completely disturbed, and the company was in heavy debt. Shareholders were not satisfied with the company’s performance, which was apparent in the dipping share prices. From HK$5.5 in July’ 96 to HK$3 in October’96. HHL was in urgent need of decreasing its debts and increasing its cash inflows otherwise it could face a cash crunch which would certainly endanger its projects all over Asia Pacific Region.

Excel Calculations

Questions Covered

1. Key Issue Identification

2. Strategic Alternatives

3. Action Plan

4. Conclusion