China Yurun unit default on short-term notes triggers cross default

China Yurun Food

22/03/2016 02:01

HONG KONG, March 22 (Reuters) - China Yurun Food Group Ltd 
 1068.HK  said that a default by a unit on short-term notes 
worth 500 million yuan ($77 million) has in turn triggered other 
provisions which require the immediate repayment of debt worth 
1.45 billion yuan. 
    The unit, Nanjing Yurun Food Co Ltd has arranged partial 
repayment of the short-term notes but the meat processing 
company's board of directors believes the likelihood of an 
immediate repayment for the other debt is not high, it said in a 
statement late on Monday. 
    It added that it is in talks with banks on the matter. 
    The partial repayment of short-term notes amounts to 220 
million yuan for the prinicipal and 32.3 million yuan in 
interest. It still owes 280 million yuan. 
    Trade in China Yurun shares, which was suspended on March  
18, resumed on Tuesday. The stocks fell 1.5 percent in early 
trade, compared to a 0.1 percent gain in the benchmark index 
 .HSI . 
($1 = 6.4812 Chinese yuan) 
 
 (Reporting by Donny Kwok and Umesh Desai; Editing by Edwina 
Gibbs) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: CHINA YURUN DEFAULT/