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.
