[4] The bank collapsed in 1986 when its auditors had qualified the 1985 accounts on fundamental uncertainty,[5] and its shareholders voted against a special resolution on capital injection of HK$154 million.
The Hang Seng Bank stepped in and bailed out the lender with a cash injection of HK$150 million in December 1985.
[6] Hang Seng assumed management control of the failed bank in June 1986, injected a total of HK$330 million,[7] and rapidly returned it to profit.
[6] The Legislative Council approved an appropriation of HK$10 million to investigate possible criminal acts that might have caused the collapse of this and two other institutions.
[8] The Commercial Crime Bureau was brought in, and investigators established the bank had collapsed on doubtful loans of $275 million relating to the personal affairs of Albert Kwok the general manager, who died in April 1986.