Sound Global Bonds Plunge After Auditors Find Cash Shortfall
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Sound Global Ltd., a Beijing-based water treatment company, slumped in the bond market after saying auditors had identified a cash shortfall and that it would miss a promised filing deadline.
Its $150 million of 11.875 percent 2017 securities plunged 13.6 cents on the dollar to 72 cents as of 5:57 p.m. in Hong Kong, according to prices compiled by Bloomberg. The notes have slid from this year’s high of 107.8 cents in February. Auditors found a discrepancy of about 2 billion yuan ($323 million) between Sound Global’s bank and book cash balances as of Dec. 31 while working on its 2014 earnings, according to a company statement Wednesday.