9 July 1998: China Southern Glass Holdings Co. Ltd. plans to allow holders of its remaining US$ 12.74 million in convertible bonds to redeem the paper ahead of schedule, a company spokesman said on re…
9 July 1998: China Southern Glass Holdings Co. Ltd. plans to allow holders of its remaining US$ 12.74 million in convertible bonds to redeem the paper ahead of schedule, a company spokesman said on recently. The company issued US$ 45 million worth of five-year bonds convertible into hard currency B shares in July 1995, and US$ 32.26 million of the bonds had been converted into 75.41 million B shares by the end of 1997, Southern Glass said. Holders of the remaining bonds requested a redemption on 31 August this year in anticipation of continued sluggishness in the B share market, the spokesman said. “Investors have called for a redemption of the bonds ahead of schedule,” he said. “They feel better holding cash due to the gloomy outlook for the B share market.” He said the company would have no problem raising funds for the early redemption, and added that the firm saw little improvement in 1998 earnings as the poor condition of the glass market would be little changed. Southern Glass would pay a total of US$ 14.28 million, including interest payments, for the early redemption, the spokesman said. The company booked net profits of 106.23 million yuan (US$ 12.80 million) last year compared with 153.04 million yuan in 1996 under international accounting standards. A company official has said the firm“s earnings last year were hit by an excess in China“s glass market.