Sino-Env appoints financial adviser

Faced with the threat of a change in shareholder control, Sino-Environment Technology is seeking the advice of nTan Corporate Advisory Pte Ltd on all implications and the measures needed to keep its business going. The group also requested a trading suspension of its shares yesterday pending its discussions with convertible bond holders. These moves followed earlier disclosures that its chairman and chief executive, Sun Jiangrong, is at risk of losing his controlling stakeholding of 56.29 per cent. He had defaulted on certain financial obligations to hedge funds and his pledged shares may be force-sold. Offers to bid for the shares had been solicited by the hedge funds. The group was informed that Mr Sun had pledged all the shares he owns in the group and some personal assets of about 10 billion yuan (S$2.2 billion) for original notes worth $120 million issued by hedge funds managed by Stark Investments (Hong Kong) Ltd, Singapore Branch Asia. About $55 million of the notes was prepaid before their maturity while the balance of $65 million became due on Feb 16. When contacted, the group's chief financial officer David Tan declined comment but clarified that the assets, other than the shares, pledged by Mr Sun are the latter's personal holdings.

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