China Milk payment for put convertibles delayed by government agency

By Lisa Kerner

Charlotte, N.C., Jan. 5 - China Milk Products Group Ltd. said it has received valid put exercise notices from holders of its zero-coupon convertible bonds due 2012 for early redemption of approximately $146 million principal amount of the bonds, which were issued in January 2007.

The company is awaiting clearance from the State Administration of Foreign Exchange of the People's Republic of China for the remittance out of China of approximately $170.56 million, a China Milk news release said.

China Milk said it believes the delay is administrative and not the result of a legal obstacle.

According to China Milk, the amount is for the full settlement of the early redemption at the option of bondholders, including interest.

China Milk is a Heilongjiang Province, China-based supplier of raw milk, pedigree bull semen and dairy cow embryos.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.