China Shanshui Cement's top shareholder says to fund its bond redemption

China Tianrui Cement Co

18/11/2015 10:56

HONG KONG, Nov 18 (Reuters) - China Shanshui Cement's 
 0691.HK  top shareholder, the Tianrui Group, said it will 
provide funds to the cash-strapped firm to redeem a $500 million 
global bond, raising investor hopes that it may avoid defaulting 
on them. 
    "Tianrui Group shall cause Shanshui Cement to have 
sufficient funds in order to support the redemption of such 2020 
Notes as required," China Tianrui Group  1252.HK  said in a 
notice to the Hong Kong Stock Exchange late on Tuesday. 
 urn:newsml:reuters.com:*:nWNBS01ML2 
    China Shanshui is holding an extraordinary general meeting 
on Dec. 1 to decide on certain changes in the board of 
directors. The changes could trigger a contractual obligation to 
redeem the bonds which are otherwise due in 2020.  urn:newsml:reuters.com:*:nHKS8Y1TKk 
    Tianrui Group, through its wholly owned unit Tianrui 
International, is the biggest shareholder in China Shanshui 
Cement, owning 28.16 percent of its equity. China Tianrui's 
Chairman Li Liufa owns 70 percent of Tianrui Group. 
    The company has received several demands for repayments from 
creditors, following a default on its onshore bonds earlier this 
month, even as it began winding up proceedings.  urn:newsml:reuters.com:*:nL3N1373RS 
    Following Tuesday's announcement, China Shanshui bonds 
 XS120043960=TE  jumped 10 points to 85 cents on the dollar. Its 
shares have been on trading suspension since April. 
 
 (Reporting by Umesh Desai; Editing by Muralikumar Anantharaman) 
 ((umesh.desai@thomsonreuters.com; +852-2843-6935; Reuters 
Messaging: umesh.desai.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA BONDS/SHANSHUI CEMENT