Tuesday, February 21, 2012
China Essence: Trading halt to be converted to suspension. Defaults on HK$30m principal and accrued interest of zero-coupon convertible bonds due on 15 Feb 2012. This was due to CNY holidays which took the local govt an unexpectedly long period of time to process the fund transfer application which resulted in co not being able to make the due payments. HSBC, serving as the trustee, has issued a letter which does not amt to a default notice, requesting immediate payment of the above. Co is looking to expedite the fund transfer process and is in talks with HSBC and bondholders to postpone the payment.