Guangzhao Forest: Currently suspended to allow time for its substantial shareholders to resolve their repayment problems with creditors. The 2 substantial shareholders who collectively hold a 21.37% stake are group chairman Su Min, group CEO Song Xuemeng and their investment vehicle Hireach Assets.
There is risk of affecting the co because a 6.0% stake has been pledged to 2 unnamed creditors which have not agreed to settle on revised terms and have explicitly stated they would enforce the share pledge if outstanding sums were not paid.
If the substantial sh/hs stake falls below 19%, this would trigger a default clause (constituting change of control of co) on the co’s notes worth US$3.7m held by Liberty Harbour. Co currently does not have the ability to make full repayment if Liberty Harbour demands redemption
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