Next Greater China Default Looms as Food Supplier Flags Gap
- Company hires adviser to seek more time, may amend bond terms
- Says doesn't have enough cash offshore to repay convertibles
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China Green Holdings Ltd., a supplier of fresh produce that has lost money in the past two financial years, said it doesn’t have enough cash offshore to repay two bonds maturing April 12.
The Hong Kong-listed firm has hired a financial adviser to ask noteholders to extend the interest and principal repayment on the two convertible securities beyond the maturity date, it said in an exchange filing dated April 4. It sold the two notes in 2013, each with a face value of 515.28 million yuan ($79.7 million) and an annual coupon of 7 percent and 10 percent. The bonds, which data compiled by Bloomberg show have a combined total 568.8 million yuan outstanding, are repayable in U.S. dollars.