Boyuan again delays payment of C$1.8 million 11.5% convertibles

By Susanna Moon

Chicago, Feb. 5 – Boyuan Construction Group, Inc. said there were further delays in transferring funds for the redemption of its 11.5% unsecured convertible debentures due Oct. 31, 2018.

Boyuan plans to pay remaining C$1.8 million principal amount plus accrued interest “as possible after the Chinese New Year’s holidays,” according to a company update on Tuesday.

The company said it made distributions to holders of C$2.9 million on Dec. 24 and C$2.7 million on Jan. 4, but “due to some unexpected operating cash shortfalls before the Chinese New Year, the company was not able to remit the remaining outstanding balance to the trustee as originally planned.”

As announced Nov. 7, the company said it delayed the redemption of the convertibles because it was “experiencing delays transferring funds from its banking partners in China.”

The company then said on Nov. 16 that it had received a notice of default from the trustee and that it was continuing to experience regulatory delays that were preventing it from transferring funds from its bank necessary to redeem the convertibles.

The convertibles were originally set to mature on Oct. 31, 2015 but, as announced March 20, 2015, holders voted to amend the note terms to extend the maturity and to raise the coupon to 11.5% from 10%.

Boyuan is a Jiaxing City, China-based builder of commercial, residential and municipal infrastructure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.