China New Town to buy back its RMB 87.36 million 17¾% notes due 2011

By Melissa Kory

Cleveland, Nov. 15 - China New Town Development Co. Ltd. announced that it will repurchase its outstanding RMB 87.36 million 17¾% U.S. dollar settled senior secured guaranteed notes due Sept. 12, 2011 from Forum Asian Realty Income II, LP.

The notes will be repurchased on Nov. 19 at par plus accrued interest from Sept. 12 up to the repurchase date. Following the repurchase, the notes will be cancelled.

The repurchase will be financed by internal resources and is expected to reduce the interest expense of China New Town from the repurchase date to the notes' maturity date by RMB 11 million.

On Sept. 28, 2008, China New Town issued RMB 593.3 million 17¾% notes. The company repurchased and cancelled RMB 505.94 million of the notes in July and September 2009.

The company is a Hong Kong-based new town developer in the People's Republic of China.

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