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Tuesday 9 June 2009
Guangzhao Industrial gets further extension for debt
Singapore Exchange-listed firm Guangzhao Industrial Forest Biotechnology Group has won another extension to repay more than US$8 million (S$11.6 million) to bondholder Liberty Harbor.
Guangzhao Industrial gets further extension for debt
By Elizabeth Wilmot 9 June 2009
Singapore Exchange-listed firm Guangzhao Industrial Forest Biotechnology Group has won another extension to repay more than US$8 million (S$11.6 million) to bondholder Liberty Harbor.
The forestry firm - involved in the production and sale of fast-growing poplar - announced yesterday that it had until July 9 to repay its debt. This replaces an earlier extension to today granted by Liberty Harbor.
It was first announced in May 2007 that Guangzhao Industrial had entered into an agreement for the issue of US$8 million convertible bonds, due 2011, to Liberty Harbor, part of Goldman Sachs Asset Management.
At the time, Guangzhao Industrial’s chief executive Song Xuemeng said the firm was delighted to receive funding support, and that the conversion price of the bonds, which was set at a premium over the last traded price, reflected ‘confidence in our business model and in our future’.
But the credit crunch saw the fortunes of the company take a turn for the worse.
In September last year, the collective stakes of its chairman Su Min and Mr. Song fell to around 31.8 per cent as a result of forced-sale of their pledged shares. They had pledged shares for an undisclosed sum of personal loans.
The change in controlling stakeholding constituted a default under the bond agreement with Liberty Harbor, giving it the right to call for redemption.
That same month, the firm’s shares were suspended from trading due to the default.
Subsequently, the firm received a statutory demand from Liberty Harbor dated April 15, asking for full repayment of US$8 million, plus interest payments that would have accrued to Oct 10, 2011.
Following the statutory demand, the firm later announced that it had been granted an extension until today to repay the sums demanded.
Guangzhao Industrial’s first quarter results for the period ended March 31 showed losses of 18.9 million yuan (S$4 million), compared to a loss of 2.7 million yuan for the same period last year. Its shares remain suspended on SGX.
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Guangzhao Industrial gets further extension for debt
By Elizabeth Wilmot
9 June 2009
Singapore Exchange-listed firm Guangzhao Industrial Forest Biotechnology Group has won another extension to repay more than US$8 million (S$11.6 million) to bondholder Liberty Harbor.
The forestry firm - involved in the production and sale of fast-growing poplar - announced yesterday that it had until July 9 to repay its debt. This replaces an earlier extension to today granted by Liberty Harbor.
It was first announced in May 2007 that Guangzhao Industrial had entered into an agreement for the issue of US$8 million convertible bonds, due 2011, to Liberty Harbor, part of Goldman Sachs Asset Management.
At the time, Guangzhao Industrial’s chief executive Song Xuemeng said the firm was delighted to receive funding support, and that the conversion price of the bonds, which was set at a premium over the last traded price, reflected ‘confidence in our business model and in our future’.
But the credit crunch saw the fortunes of the company take a turn for the worse.
In September last year, the collective stakes of its chairman Su Min and Mr. Song fell to around 31.8 per cent as a result of forced-sale of their pledged shares. They had pledged shares for an undisclosed sum of personal loans.
The change in controlling stakeholding constituted a default under the bond agreement with Liberty Harbor, giving it the right to call for redemption.
That same month, the firm’s shares were suspended from trading due to the default.
Subsequently, the firm received a statutory demand from Liberty Harbor dated April 15, asking for full repayment of US$8 million, plus interest payments that would have accrued to Oct 10, 2011.
Following the statutory demand, the firm later announced that it had been granted an extension until today to repay the sums demanded.
Guangzhao Industrial’s first quarter results for the period ended March 31 showed losses of 18.9 million yuan (S$4 million), compared to a loss of 2.7 million yuan for the same period last year. Its shares remain suspended on SGX.
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