Sino Grandness says served with $28.7 mil letter of demand by lender

Sino Grandness says served with $28.7 mil letter of demand by lender

PC Lee
16/01/19, 09:57 pm

SINGAPORE (Jan 16): Sino Grandness Food Industry Group, the producer and distributor of branded juices and canned fruits and vegetables, has revealed that it was served with a letter of demand on Jan 8 totalling $28.73 million.

In its reply to the Singapore Exchange (SGX) on Wednesday night, Sino Grandness says lender Soleado Holdings is demanding the group pays a total sum of US$21.2 million ($28.7 million) and $30,000 by no later than Jan 21.

On Monday, Sino Grandness had called for a trading halt pending an announcement after SGX issued an unusual trading query to the group after the latter's share price plunged 12.7% to 12 cents with some 4.2 million shares changing hands compared to its three-month volume average of 0.33 million.

See: Sino Grandness asks for trading halt pending annnouncement after SGX query on 12.7% fall

Explaining to the SGX, Sino Grandness says the sum in question is for payment related to the outstanding loan principal amount, outstanding interest, default interests payable and reimbursement of the amount of all costs and expenses -- including professional and legal fees incurred by the lender -- under the repayment framework agreement signed on July 20 2017 to the loan agreement entered into on April 13 2016.

Sino Grandness says it is still in negotiation with Soleado to settle the matter amicably and would make the necessary announcement as and when there is any material development.

Sino Grandness also revealed that Goldman Sachs Investments Holdings (Asia) and CDIB Capital Investment have agreed to an amended bonds repayment extension proposal and on Monday had entered into an amended and restated original agreement with its bondholders.

An announcement relating to the amended agreement will be released before the lifting of trading halt, adds Sino Grandness.

Meanwhile, the company says it is in compliance with SGX’s listing rules and that its board of directors “collectively and individually take responsibility for the accuracy of the aforesaid replies to the queries by the SGX”.

On Wednesday night, Sino Grandness also reported its 3Q results in a separately filing. For the three months ended Dec, earnings fell 19.6% to RMB 155.5 million ($31.2 million) as revenue fell 4.1% to RMB 1.18 billion and distribution & selling expenses, admin expenses and finance costs rose.

Huang Yupeng, Chairman and CEO of Sino Grandness, said 3Q net profit was impacted by higher distribution and selling expenses as the group continued to invest in advertising and promotional activities in order to grow its brand value and distribution network.

For the nine months ended Dec, revenue increased 4.2% to RMB 2.9 billion due to higher orders from beverage and domestic canned products segments although earnings fell 2.3% to RMB 343 million due to higher operating expenses.

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