Neo-China Land seeks to amend upcoming put option for 0% convertibles

New York, March 25 - Neo-China Land Group (Holdings) Ltd. said it is seeking to amend the upcoming put option on its zero-coupon convertible bonds due 2011.

At present holders have the right to put the securities back to the company at a price of HK$12,010.248 per HK$10,000 principal amount on June 12.

Under the proposed amendment, the June 12 put price would be changed to HK$4,000 per HK$10,000 principal amount and would apply to all but not some of each holder's bonds.

An additional put on June 12, 2010 at a price of HK$12,766.426 per HK$10,000 principal amount would be added. This new option would be exercisable for some or all of a holder's bonds.

A meeting of bondholders will be held on April 16 to consider the change.

To amend the bonds, Neo-China needs a quorum of two or more people representing holders of at least 75% of the principal amount and a vote in favor of at least three-quarters of the votes cast.

Neo-China says that while its directors believe it will have sufficient resources to redeem all the bonds on June 12 if necessary, they feel it would be difficult to obtain bank or other financing to replenish the company's financial resources. At present, the company added, the directors think it is in the best interest of the company to preserve capital for future business development rather than use it to pay off the bonds.

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