Skyfame Realty agrees to redeem some 4% convertibles with asset sale proceeds

By Angela McDaniels

Tacoma, Wash., June 11 - Skyfame Realty (Holdings) Ltd. said holders of its $200 million 4% secured convertible notes due 2013 approved the company's proposed sale of the Tianhe Project through the disposal of its equity interest in Yaubond Ltd.

The approval was given on the condition that the notes will be redeemed on a pro rata basis using all sale proceeds that remain once expenses related to the sale are paid and a HK$220 million loan is repaid, according to a company news release.

The company said it will release further details on the early redemption agreement once the final terms are agreed upon.

In addition, the noteholders agreed to further extend a key deadline for the company's Zhoutouzui Project. In return, the company agreed to automatically redeem the notes if the deadline is not met.

The agreement gives the company until March 31, 2009 to obtain land use right certificates, a work permit and planning permission on design parameters for the project. It was reached during a meeting of the special committee of noteholders that was held on June 6 and adjourned to June 10.

Skyfame Realty is Hong Kong-based investment holding company focused on property development.

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