GNG (Geong International) is a company I follow from time to time, for pretty much the same reason that Victorians used to visit mental asylums for their entertainment value.
Well, I came across a tweet by @Proselenes, that pointed out the latest disaster befalling GNG. Here’s the RNS issued today:
The Company announces that payment of the interest amount due on 31 December 2012 under the CULS [convertible unsecured loan stock] was late as a result of unexpected delays in the granting of approval by the State Administration Of Foreign Exchange of China (“SAFE”) for the transfer of funds. Payment, which was still being processed on the due date, was made on 15 January 2013. As a result of the late payment which represents a default under the terms of the CULS, the holders, Hanafin Investments Limited (“Hanafin”), have requested immediate repayment of the CULS. Whilst the Company has adequate resources to make the repayment it will not be able to secure the necessary approvals from SAFE to do so in the short term.
Shares are down nearly 42% on the announcement. Receivables still represent over two years of revenues.