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Creditors demand Wuzhou International to repay in advance 1B yuan of loans

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Creditors demand Wuzhou International to repay in advance 1B yuan of loans

Certain creditors are demanding that Wuzhou International Holdings Ltd. early repay loans totaling about 1.00 billion yuan.

The demand comes as the company's board disclosed that an event of default has occurred relating to its issuance of US$300.0 million in 13.75% senior notes due 2018 under an agreement signed Sept. 26, 2013. The creditors also declared some loans to be due and payable immediately because of the default.

Five civil petitions have been filed in China against the company or its subsidiaries for the repayment of loans with a combined estimated value of 484.4 million yuan.

In a filing, Wuzhou said it is collaborating with its creditors to extend the repayment period or come up with alternative payment schemes for the affected loans.

Trading in Wuzhou's shares and of its 2018 senior notes on the Hong Kong stock exchange was halted June 28, pending the release of inside information. It announced together with its latest debt update that it expects its shares to start trading again on the bourse by July 5, while the trading halt for its notes will continue until further notice.

As of July 4, US$1 was equivalent to 6.63 yuan.