China Luoyang Float Glass (Group) Co Ltd (CLFG), a controlling shareholder of Luoyang Glass Co Ltd, will settle its debts to Luoyang Glass with the A shares that it owns in the company in the event th…
China Luoyang Float Glass (Group) Co Ltd (CLFG), a controlling shareholder of Luoyang Glass Co Ltd, will settle its debts to Luoyang Glass with the A shares that it owns in the company in the event that it is unable to pay the debt, an arbitration committee has ruled. According to a statement from Luoyang Glass, the arbitration court which heard its complaint against CLFG said that the shareholder will need to pay its debts including interest amounting to CNY 630 million It said that if CLFG is unable to pay the amount, it will need to give up 199.98 million A-shares, valued at CNY 3.15 each to cover its debts. CLFG owes the company some CNY 232.4 million, while CLFG“s associates owe it CNY 397.6 million. Trading in the company“s shares, suspended since 31 October 2006, will remain suspended pending a further announcement, it said.