Sellers of Sino-Forest bonds pay to settle
Source: Bloomberg News |
May 10, 2012, Thursday
|
Print Edition
Print Edition
SELLERS of credit-default swaps on Sino-Forest Corp's bonds will have to pay 71 cents on the dollar to settle contracts after the Chinese tree grower filed for bankruptcy protection.
Dealers set a final value of 29 percent at an auction for Sino-Forest's bonds yesterday, said administrators Markit Group Ltd and Creditex Group Inc. The settlement was agreed after 12 banks determined the value.
Sino-Forest filed for bankruptcy protection in March, almost 10 months after Carson Block's Muddy Waters LLC said on June 2 the company had overstated its assets. The report led to increased investor scrutiny of Chinese companies trading on North American stock exchanges, cutting their value by 45 percent in the past year.
"The key uncertainty is how many assets the company owns, how much of those they can sell and at what price," Annisa Lee, a credit analyst at Nomura Holdings Inc, said yesterday. "Some value might come out from asset sales but it depends how much time it takes to sell those assets."
The company's stock plunged 74 percent following the report before its shares were suspended from trading on August 25. Toronto-listed Sino-Forest has denied Block's allegations. Sino-Forest, once the largest Chinese forestry company by market value, said it's seeking damages and recovery of profits made by Muddy Waters and others in connection with the short seller report.
Dealers set a final value of 29 percent at an auction for Sino-Forest's bonds yesterday, said administrators Markit Group Ltd and Creditex Group Inc. The settlement was agreed after 12 banks determined the value.
Sino-Forest filed for bankruptcy protection in March, almost 10 months after Carson Block's Muddy Waters LLC said on June 2 the company had overstated its assets. The report led to increased investor scrutiny of Chinese companies trading on North American stock exchanges, cutting their value by 45 percent in the past year.
"The key uncertainty is how many assets the company owns, how much of those they can sell and at what price," Annisa Lee, a credit analyst at Nomura Holdings Inc, said yesterday. "Some value might come out from asset sales but it depends how much time it takes to sell those assets."
The company's stock plunged 74 percent following the report before its shares were suspended from trading on August 25. Toronto-listed Sino-Forest has denied Block's allegations. Sino-Forest, once the largest Chinese forestry company by market value, said it's seeking damages and recovery of profits made by Muddy Waters and others in connection with the short seller report.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
