CHINA MILK PRODUCTS GROUP LIMITED (Incorporated in the Cayman Islands with registration number CT-155106) UPDATE ON EARLY REDEMPTION OF ZERO COUPON CONVERTIBLE BONDS DUE 2012 (THE “CONVERTIBLE BONDS”) PURSUANT TO THE TERMS AND CONDITIONS OF THE CONVERTIBLE BONDS (THE “TERMS AND CONDITIONS”)
The Board of Directors (the “Board”) of China Milk Products Group Limited (the “Company” or “China Milk”) refers to the Convertible Bonds issued by the Company in January 2007. To date, the Company has received valid put exercise notices from holders of the Convertible Bonds (the “Bondholders”) in respect of early redemption of approximately US$146 million in principal amount of the Convertible Bonds, in accordance with the Terms and Conditions (“Early Redemption at the Option of the Bondholders”).
The Board wishes to advise that the Company is still currently awaiting clearance from the State Administration of Foreign Exchange (“SAFE”) of the People’s Republic of China (the “PRC”) for the remittance out of the PRC of approximately US$170.56 million, being for the full settlement of the Early Redemption at the Option of the Bondholders (including interest). The Company believes the delay is administrative and procedural in nature and there is no legal obstacle to the remittance of the same.
The Company will provide further updates via announcements, as and when appropriate, to keep Bondholders, shareholders of the Company and the investing public appraised of any further developments in connection with the application made to SAFE.
By order of the Board CHINA MILK PRODUCTS GROUP LIMITED
NG JOO KHIN / CHOI HO YAN JOINT COMPANY SECRETARIES 5 January 2010
looks bad from the news but looking at balance sheets, it seems able to pay off the bonds.
is this another way they are making ppl to sell so they can accumulate more before the next run?
see like that also very scare. Think most likely must try to sell even at lost tomolo. (Fear) :(
Six Singapore-listed China firms can’t repay debt, SCMP says
Written by Bloomberg
Monday, 25 January 2010 14:33
Six of the 11 Chinese companies listed in Singapore that sold convertible bonds between 2005 and 2008 have said they are unable to repay debts, the South China Morning Post reported, citing an investor association official.
The Securities Investors Association of Singapore asked the Chinese government to discipline the companies since Singapore doesn’t have the authority to do so, Chairman David Gerald said, according to the Hong Kong-based newspaper. The association represents 4,000 small shareholders, the report said.
Steel group Delong Holdings and developer Sunshine Holdings have reorganised their finances, while the other four companies are negotiating with creditors, the report said.
Delong said in September that it planned to restructure about 1.5 billion yuan ($308 million) of convertible bonds due in 2012 and Sunshine Holdings said in the same month that it reached a settlement agreement on US$120 million ($168 million) of loans.
Delong Holdings Chairman Ding Liguo didn’t return calls from Bloomberg News seeking comment today while Foo Soon Soo, joint secretary for Sunshine Holdings, declined to comment.
China Printing & Dyeing Holdings, China Milk Products Group, Sino-Environment Technology Group and FerroChina are the other companies named by the SCMP.
China Printing said Oct 26 it was in restructuring talks with a potential investor, then said Jan. 21 that the Singapore Exchange ordered it to delist by Feb 12. China Milk said on Jan 5 that it wouldn’t be able to meet a repayment deadline for convertible bonds due in 2012 because it was awaiting approval from China’s State Administration of Foreign Exchange.
Sino-Environment, a provider of waste-treatment services, said in July that it couldn’t pay interest on $149 million of convertible bonds and asked creditors for more time to review its finances. Steelmaker FerroChina said on Dec 17 that the Singapore bourse asked it to delist after saying in October 2008 that it was unable to repay 706 million yuan of loans amid the credit crisis.
Calls to the offices of China Milk, China Printing, Sino- Environment and FerroChina weren’t immediately answered.
BEIJING (Reuters) - Authorities in southwestern China have ordered three batches of milk products off shelves because they contain a chemical that killed at least six children in 2008, causing global concern over the made-in-China brand.
The health department in Guizhou province stopped the sales of dairy products made by three Chinese companies, the state-run China Daily newspaper said.
The products were found to contain melamine, which can cause kidney stones and is meant for making plastics, fertilizers and even concrete. Its high nitrogen content allows protein levels to appear higher when it is added to milk or animal feed.
Guizhou health authorities were unavailable for comment.
China executed two people in November for their role in a huge melamine-tainted milk scandal that killed at least six children and sullied the made-in-China brand.
Nearly 300,000 children fell ill in that scandal in 2008 after drinking milk intentionally laced with melamine, sold mainly in that case by the now bankrupt Sanlu Group.
(Reporting by Ralph Jennings; Editing by Ben Blanchard)
Post Reply
